One of my favorite days of the year yesterday: my company's quarterly equity award transfers and semi-annual employee stock program buy at discount rates.
My understanding from internal industry talk is that they were reeeally struggling to stay afloat, and the PE Firm they were originally with had been trying to buy it back. I guess they finally found the $
Selling something for $14 and then buying it back for $8 can help you find a lot of money. ($6 every time you run that scam.)
Must be a lot of people taking profits or shorting the rally before Powell’s presser tomorrow. A lot of market moving news in a few day period.
Way under expectations with only the stickiest of things remaining. Idk seems like this was a really good report relatively speaking and there was no buying energy once the market opened. I guess just more relief and profit taking than anything. Another data point that proves to me trying to play anything short term is dumb.
I’ve set my expectations at Mr. Powell torching $25k of my money on fire here soon. Anything less I’ll be fine with.
Jerome Powell can suck my dick sounds like they’re not done raising rates. Will not stop until millions lose their jobs and everyone in debt up to their eyeballs but luckily milk and eggs won’t be 25 cents more expensive fucking idiots
Not being done could simply mean one final 25 basis point hike. Idk the markets still just spook too easy.
Idk why he feels he needs to tank the markets but it’s a pattern now. Almost wish the next CPI is bad so he doesn’t have to get up there and be a Debbie downer.
Increases in financial assets give people discretionary income to go buy things > driving up prices of goods > countering his rate hike raises/battle against inflation. But really he hasn’t said anything new, markets just keep shrugging it off thinking they’ll pivot, and then they say they aren’t and we do this circle all over again. Nothing will change till the labor market weakens to a point and then we will get a stand off over their dual mandate.
Depends who you are, if you are a boomer on a fixed income you want this. Sucks for everyone else. This is why labeling it transitory and being wrong was dangerous, you could’ve hiked a lot sooner and smaller increments to cool things down quicker. Now we’ve crammed in 400bps of hikes in like 9 months and we will see what consequences that will have in 2023.
It's really super cool that we have a central bank trying to cause unemployment and depress wage growth on purpose.
It’s been exactly a month and this moved +10%, which is a pretty big move for treasuries. Figure it’s probably time to close with a win. Right now just feels like a good time to sit on my hands and just watch.
Well inflation is one of their two mandates by congress so unsurprising that they are doing what they believe is right to fix the one that is far from their stated target. Their error was labeling it transitory in the first place.
Hey, thanks for this by the way. This wasn’t something I had thought of before you mentioned it in here. Gives me something to do with sidelined cash.
No I understand why they're doing it but the reason they're doing it is because we've had the largest wage growth by the lowest wage earning Americans in decades in the last 2 years. There's been a major shift in balance of power from capital to labor in the last 2 years and this is meant to severely limit it because we can't be having too many poors with too much buying power. Things will get too expensive!
Nevermind that (iic) the poors are better off even after inflation adjusted wages in the last 2 years.
Isn’t it more about people having more choice in work? It’s also directly related to the overly stringent immigration policy. Feels like we should increase both immigration quotas and tax on high earners rather than this approach
Yes, they are fearful of a wage price spiral but wages have not been the primary driver of inflation and therefore really not why the Fed is raising rates. I agree with you that labor has wrestled some power away the last 2 years and thats good! I just disagree with the tint you seem to view this topic, that the government is trying to keep the man down so to speak. For average americans this hasn't been the case and for the bottom 20% as far as I could find 2021 did not offer any relief, I didn't see anything on 2022 but I can't imagine it got much better.
It’s more a lot of Boomers retired post COVID and the labor force participation rate has dropped significantly and suddenly. Add in increased demand from discretionary income/stimulus and now current participants in the work force have a lot more choice in where and how they work. Which is good, and we should increase immigration to continue growing in this country.
real wage growth for the bottom 50% are positive last I saw as people shared charts post CPI. upper tier is who has gotten hit the hardest, which is great. income inequality has shrunk more in the last two years than basically ever in history
This is the best I could find but only got positive after the last CPI report. High earners definitely underperformed which is good but all lost vs inflation.
I’d imagine going forward for a bit workers will gain back some of that purchasing power vs inflation given current trends, but that remains to be seen.
would like to see that trend continue instead of the reverse versions of real wage growth we've seen over the last 40yrs
Plays around with the MMM retirement theory https://networthify.com/calculator/...nce=0&expenses=0&annualPct=4&withdrawalRate=3
By the end of this week I should get to do the most fun personal budgeting activity there is; rewriting the budget following a large pay increase. question, is the following still the proper order of operations for retirement? Get full match from employer 401k Max IRA Max 401K Max HSA Does step 2 change at all if you're over Roth limits?
1, 4, 2, 3. Get that HSA deduction + can be used like a traditional IRA once eligible if not using funds for medical expenses.
What's the strategy behind maxing out your IRA over 401k especially if it's not a Roth? Asking for a friend.
Can’t say there is one, other than maybe fund selection. Saving on FICA taxes probably negates that though.