Tag Archive for: stocks

Stock Market Crash Is Coming FOR SURE; Preventing It Will Push Rates Higher

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We are going to see a 1987-style stock market crash (only worse) for sure, and it is only a matter of when. I have blogged about this many times, but investing guru Mike Green was just on this Julia La Roche podcast - Why A 1987-Style Crash Is Now Almost Inevitable – explaining why. So, I am hitting it again for two reasons: (1) the podcast is very short – so every investor should listen to it; and (2) I am adding another twist to explain why this threat will lead to higher rates.Read More

The Gold To Hot Dog Ratio (And Tiger Woods Too) Explains Everything & It’s Why People Need to Own Homes

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In 1906 an ounce of gold could have bought 690 hot dogs, as hot dogs cost 3 cents and gold cost $20.67 per ounce. In 2025 an ounce of gold buys about the same number of hot dogs (675), as hot dogs cost $4, and gold is about $2,700 per ounce.Read More

Stock Prices Crashed 89% From 1929 – 1932; Bond Prices Went Up 15%; Diversification Reminder

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Analysts frequently remind us that diversification within stocks is not true diversification. Prudent investing often means spreading assets across equities, bonds, real estate, commodities, and other classes, even if it requires sacrificing some gains in a single hot asset class.Read More

Rates Up Again! Johnson: “This Is The New Normal, Unless…”

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Brent Johnson says rates will remain relatively high…unless there is a major crisis that forces a massive “flight to safety” (when investors move from stocks to bonds en masse), or a Fed intervention (with massive rate cuts and/or quantitative easing).Read More

4 Things Financial Guru Dave Ramsey Gets Horribly Wrong

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Dave Ramsey is a famous financial guru, author, and podcast host with an enormous following. His basic tenets include living 100% debt-free, maintaining a healthy emergency fund, living below your means, and investing in index funds. Read More

“Rates Won’t Fall In 2025” Per Brent Johnson; FHA Delinquencies Climb

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Brent Johnson is my favorite macro analyst because he’s not on a team, he’s so pragmatic, and he’s been so accurate with his predictions. He was just on a recent Sachs Realty podcast, saying that rates will hold steady and go up a bit next year – largely in response to the supply of bonds that will hit the market.Read More

100% Chance of Rate Cut In November

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Rates are up a full 1/4% since the Fed “cut rates” last Wednesday. This is just additional proof in the pudding when it comes to our frequent reminders to borrowers […]Read More

Fed “Cuts Rates;” Mortgage Rates Shoot HIGHER In Response

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It is sometimes hard to be this right about things…if only because I was so wrong about predicting a recession in 2023. 😊 BUT I was very right about rates […]Read More

Huge Myth: Stock Prices Always Rise; Stocks Were FLAT For 45 Years!

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The biggest myth in finance is that stock prices always go up. But – it took a full 25 years for stocks to return to their 1929 highs (in 1954) after the 1929 crash. And after stocks peaked in 1968, it took a full 7 years to return to their peak.Read More

Is The Big Crash Finally Here?

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Markets always overreact to major news – whether it is good or bad. Reactions are driven by greed for gains and fear for losses – good things that drive capitalism, […]Read More

Stock Market Is NOT The Economy; Earthquake Tomorrow; Nordstrom Index

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Tomorrow’s earthquake could be in the bond market because retail sales numbers will be released. And last month, bond yields and interest rates plummeted when retail sales numbers came out softer than expected. This is because retail sales are a great indication of the health of our economy - that is 70% consumer spending.Read More

Both Stocks and Bonds Soar; Confusion or Goldilocks Economy?

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What gives is that many stock investors believe the Fed has pulled off a miracle – raising rates just enough to kill off inflation, while NOT killing off the economy at the same time.Read More

Why Do We HATE Each Other So Much? And Why Does It Matter For Housing?

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America has not been this contentious or polarized since the Civil War – as most readers know. Many people blame social media for this polarization. The ability to post online without being face-to-face and the ability to post anonymously – seems to foster much more contentious and polarizing discourse.Read More

How Sky-High Stock and Bitcoin Prices Distort The World (Labor Force Participation)

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I personally know several men under 50 who have “retired” or left the labor force because their Bitcoin and crypto holdings have made them feel wealthy enough to do so. These guys of course are not unique as there are thousands (maybe millions) of other people who have done the same.Read More