If my pin collection that I have been building gets hit I won't be selling in a panic. I'm retired and everything is paid for. But the poor boys who have loaded up at the credit barn and then lose their job.... I'd have to join that Warren Buffet "blood in the streets" buying opportunity.
The chart O-din put up is interesting.
2001 is when G.W. Bush was inaugurated. As I recall, almost as soon as he took office, the first words out of his mouth is "that the country is going into a recession". By the chart, he was correct, but maybe late in calling it (enter hind site). From February forward there is a little more of downward slide followed by the 9-11 drop.
In 2002 GWB starts talking about Saddam and his Weapons of Mass Destruction. Then the mini recovery and sideways action until around March 2003 when the U.S. invaded Iraq with Shock and Awe.
2004 and 2005 would suggest that war is good for the economy. A quick victory was expected.
In 2006 things stalled out on the chart. What I recall of things happening is that California came out with the 50 year home mortgage, and an outfit called Ditech was pushing zero interest home loans, and I starting hearing from people getting laid off and moving back home with mom and dad.
2008 was all GWB and Obama was inaugurated in Feb. 2009.
2016 and everybody was saying Trump would be bad for the stock market and look at that chart.
The question: Are we at the peak like 2006?
c430316a96de5ac150cd8b775e0828d182245488.png (resized).jpg
I do have to laugh when all of the pundits are saying that inflation is starting to pick up. I remember in 2009 when cat food went from 20 LB. sacks to 16 LBs per sack and the price stayed the same---a 30% price any way you cut it. Sugar was 5 lbs. then 4 lbs; I'm waiting for the 3 lb sack to arrive.
A gallon of milk is still a gallon of milk but the grocers use milk as a price war vehicle. A quart of oil is still a quart but to compensate the price had to go up; No hiding the price increase with smaller containers here.
And finally, we have bailed out all of the banks and all of the underwater homeowners; Somewhere in here Greater Fool Theory has to come in to play.
Next up on the list: We will start hearing about Galloping Inflation.