A recession is needed in order SHAKE-OUT the fools...

[MJ DeMarco]

I welcome a recession as I view it as a necessary evil in order to bring order and common sense back to investing and the financial markets. In other words, a recession is needed to shake-out the investment fools who think investing means "Go to Robinhood and buy any option discussed at Wall Street Bets".

Here's a prime example of a shake-out.

How I turned $15,000 into $1.2m during the pandemic – then lost it all

Investing in risky stocks gave me the illusion of control in a time of uncertainty – until it derailed my entire life

www.theguardian.com

The entire read is long, cringeworthy, and full of political red meat, including a nice little trope about how money can't buy happiness.

But it shows what a shake-out looks like: It's an "investor" who thinks buying options in a high-volatility environment is investing. It's an investor who has known NOTHING but up-up-and-up in the markets for the last 15 years. It's an investor who is a gambler, someone who thinks Reddit's Wall Street Bets is "inside information" and financial advice.

We recently had someone here who was being "shaked out" and instead of learning from his mistakes, he called 9 months of market declines a "black swan."

HOT! - INTRO - Need help from a whale to offset my massive trading losses

If you've invested long enough, you know how hard it is to become successful and stay successful. I've been up numerous of times, yet every time I get to the millions, a black swan event happens to cause me to lose just about everything I have in less than a months time. Just about the worst...

www.thefastlaneforum.com

Folks, the recession is needed in order to bring common sense back to investing. It is needed to make people realize that REAL WEALTH is created by producing REAL VALUE -- not because you bought some overpriced puts with an IVR of 100% and got lucky.




As they say, everyone's a genius in a bull-market.

Bring on the recession.

 

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[farmer79]

What is not understood is there was a true black swan event. The global economy being entirely shutdown for 12-24 months and the markets more than doubling in 17 months. Completely devoid off all logic. That was a flock of black swans.
1. Worldwide global pandemic horribly mismanaged by government.
2. People stuck at home, it’s illlegal to go for a walk in the park.
3. Robinhood rising giving easy, commission free, instantaneous, gameified trading.
4.All sports betting stopped cold turkey, because there is no sports.
5. And who can forget,all those people stuck at home, we’ll give them free money, and tell them they don’t have to pay their rent or make mortgage payments.

It was a flock of black swans.

The market drop from 4800 to 3800? The upcoming recession? Completely inevitable. We are still above the Pre-Covid frothy highs. It’s a black swan we are still this high.

 

[biophase]

I welcome a recession as I view it as a necessary evil in order to bring order and common sense back to investing and the financial markets. In other words, a recession is needed to shake-out the investment fools who think investing means "Go to Robinhood and buy any option discussed at Wall Street Bets".

Here's a prime example of a shake-out.

How I turned $15,000 into $1.2m during the pandemic – then lost it all

Investing in risky stocks gave me the illusion of control in a time of uncertainty – until it derailed my entire life

www.theguardian.com

The entire read is long, cringeworthy, and full of political red meat, including a nice little trope about how money can't buy happiness.

But it shows what a shake-out looks like: It's an "investor" who thinks buying options in a high-volatility environment is investing. It's an investor who has known NOTHING but up-up-and-up in the markets for the last 15 years. It's an investor who is a gambler, someone who thinks Reddit's Wall Street Bets is "inside information" and financial advice.

We recently had someone here who was being "shaked out" and instead of learning from his mistakes, he called 9 months of market declines a "black swan."

HOT! - INTRO - Need help from a whale to offset my massive trading losses

If you've invested long enough, you know how hard it is to become successful and stay successful. I've been up numerous of times, yet every time I get to the millions, a black swan event happens to cause me to lose just about everything I have in less than a months time. Just about the worst...

www.thefastlaneforum.com

Folks, the recession is needed in order to bring common sense back to investing. It is needed to make people realize that REAL WEALTH is created by producing REAL VALUE -- not because you bought some overpriced puts with an IVR of 100% and got lucky.

View attachment 45805

View attachment 45806
As they say, everyone's a genius in a bull-market.

Bring on the recession.

I never understood the part about not taking money off the table. I've always viewed any type of monthly or fast cashflow as a temporary income stream and to bank it away into something that is not tied to the income stream.

That's probably why my ecom business has also never grown exponentially. I never put my profits all back into it. I would always take most of my profits and invest it elsewhere. I've seen so many people make a ton of money and five years later, still have nothing to show for it.

If you reinvest everything back into your one source money machine and that machine breaks, you are left with nothing to show for all your work.

Sadly, the person in this article would not have listened to advice from anyone. He could have a nice $500k nest egg spouting off $25k-$50k in passive income for the rest of his life. If he really wanted to buy his parents a house or his dad's church a van, he would have done so. But I think that was a nice thing to say in the article to make himself feel better.

 

[MetalGear]

These $10 cupcake places are all going to feel it.

 

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[Kak]

I welcome a recession as I view it as a necessary evil in order to bring order and common sense back to investing and the financial markets. In other words, a recession is needed to shake-out the investment fools who think investing means "Go to Robinhood and buy any option discussed at Wall Street Bets".

Here's a prime example of a shake-out.

How I turned $15,000 into $1.2m during the pandemic – then lost it all

Investing in risky stocks gave me the illusion of control in a time of uncertainty – until it derailed my entire life

www.theguardian.com

The entire read is long, cringeworthy, and full of political red meat, including a nice little trope about how money can't buy happiness.

But it shows what a shake-out looks like: It's an "investor" who thinks buying options in a high-volatility environment is investing. It's an investor who has known NOTHING but up-up-and-up in the markets for the last 15 years. It's an investor who is a gambler, someone who thinks Reddit's Wall Street Bets is "inside information" and financial advice.

We recently had someone here who was being "shaked out" and instead of learning from his mistakes, he called 9 months of market declines a "black swan."

HOT! - INTRO - Need help from a whale to offset my massive trading losses

If you've invested long enough, you know how hard it is to become successful and stay successful. I've been up numerous of times, yet every time I get to the millions, a black swan event happens to cause me to lose just about everything I have in less than a months time. Just about the worst...

www.thefastlaneforum.com

Folks, the recession is needed in order to bring common sense back to investing. It is needed to make people realize that REAL WEALTH is created by producing REAL VALUE -- not because you bought some overpriced puts with an IVR of 100% and got lucky.

View attachment 45805

View attachment 45806
As they say, everyone's a genius in a bull-market.

Bring on the recession.

Agreed. No question.

Reminds me of the average large cap CEO of the last 10 years. They haven’t needed to do much more than virtue signal.

It’s time some work gets done by the actual value creators. Those “geniuses,” like the responsibility dodging, “James Taggert” CEO of Ford, are hopefully done.

 

[polaroid22]

The market drop from 4800 to 3800? The upcoming recession? Completely inevitable. We are still above the Pre-Covid frothy highs. It’s a black swan we are still this high.

All true, but they also printed so much money (1/5th of all US dollars in 2020 alone.) that one starts to wonder that the prices so far, might have dropped enough already, in comparison with the money invested right now. It's not that the money is disappearing, it's just changing hands.

 

[Guest-5ty5s4]

I never understood the part about not taking money off the table. I've always viewed any type of monthly or fast cashflow as a temporary income stream and to bank it away into something that is not tied to the income stream.

That's probably why my ecom business has also never grown exponentially. I never put my profits all back into it. I would always take most of my profits and invest it elsewhere. I've seen so many people make a ton of money and five years later, still have nothing to show for it.

If you reinvest everything back into your one source money machine and that machine breaks, you are left with nothing to show for all your work.

Sadly, the person in this article would not have listened to advice from anyone. He could have a nice $500k nest egg spouting off $25k-$50k in passive income for the rest of his life. If he really wanted to buy his parents a house or his dad's church a van, he would have done so. But I think that was a nice thing to say in the article to make himself feel better.

I agree with you. I would add that even if your machine never breaks, you might wind up with a massive machine/business that just owns your entire life (and is worth a lot on paper that the CPAs and banks all drool over - but hey you can take out lots of credit whenever you need to). That's why converting active/business income to passive income is so important.

Anyway, I agree entirely with MJ's point. Lots of market mania the last few years. I also agree with the first reply by @farmer79 though - there have been some actual Black Swans - and I don't mean the pandemic, I mean the government's response to the pandemic primarily, like making business illegal.

 

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[jdm667]

Another thing is that now people and businesses are spoiled with low interest rates. They think they are entitled to 2.5% on a mortgage.

They think 7% is high. Um, no, it's not. Look at the rates over the past 40 years. 2.5% on a mortgage is the problem, not 7%.

 

[Ronnie Bryan]

I never understood the part about not taking money off the table. I've always viewed any type of monthly or fast cashflow as a temporary income stream and to bank it away into something that is not tied to the income stream.

That's probably why my ecom business has also never grown exponentially. I never put my profits all back into it. I would always take most of my profits and invest it elsewhere. I've seen so many people make a ton of money and five years later, still have nothing to show for it.

If you reinvest everything back into your one source money machine and that machine breaks, you are left with nothing to show for all your work.

Sadly, the person in this article would not have listened to advice from anyone. He could have a nice $500k nest egg spouting off $25k-$50k in passive income for the rest of his life. If he really wanted to buy his parents a house or his dad's church a van, he would have done so. But I think that was a nice thing to say in the article to make himself feel better.

 

[Ronnie Bryan]

I welcome a recession as I view it as a necessary evil in order to bring order and common sense back to investing and the financial markets. In other words, a recession is needed to shake-out the investment fools who think investing means "Go to Robinhood and buy any option discussed at Wall Street Bets".

Here's a prime example of a shake-out.

How I turned $15,000 into $1.2m during the pandemic – then lost it all

Investing in risky stocks gave me the illusion of control in a time of uncertainty – until it derailed my entire life

www.theguardian.com

The entire read is long, cringeworthy, and full of political red meat, including a nice little trope about how money can't buy happiness.

But it shows what a shake-out looks like: It's an "investor" who thinks buying options in a high-volatility environment is investing. It's an investor who has known NOTHING but up-up-and-up in the markets for the last 15 years. It's an investor who is a gambler, someone who thinks Reddit's Wall Street Bets is "inside information" and financial advice.

We recently had someone here who was being "shaked out" and instead of learning from his mistakes, he called 9 months of market declines a "black swan."

HOT! - INTRO - Need help from a whale to offset my massive trading losses

If you've invested long enough, you know how hard it is to become successful and stay successful. I've been up numerous of times, yet every time I get to the millions, a black swan event happens to cause me to lose just about everything I have in less than a months time. Just about the worst...

www.thefastlaneforum.com

Folks, the recession is needed in order to bring common sense back to investing. It is needed to make people realize that REAL WEALTH is created by producing REAL VALUE -- not because you bought some overpriced puts with an IVR of 100% and got lucky.

View attachment 45805

View attachment 45806
As they say, everyone's a genius in a bull-market.

Bring on the recession.

Guilty. I actually considered Robinhood at one time. This forum helped me decide that was not wisdom. Thank you, MJ

 

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[Johnny boy]

Our lawn care workforce is going to be comprised of real estate agents, crypto traders, and twitter executives.

 

[FIFL]

Our lawn care workforce is going to be comprised of real estate agents, crypto traders, and twitter executives.

nah. hard work and those people don't mix. they're screwed

 

[Johnny boy]

nah. hard work and those people don't mix. they're screwed

That’s okay we set up the job so there’s no hard work involved

 

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[woken]

Maybe I’m too young or dumb.

What’s wrong with a recession? Isn’t it part of the economy? Isn’t it out of our control? Isn’t it guaranteed that IT WILL HAPPEN every now and then? Why are people acting like this is a surprise ?

I understand some lost “everything” during the other recessions but doesn’t that happen when you’re over leveraged?

 

[jdm667]

Maybe I’m too young or dumb.

What’s wrong with a recession? Isn’t it part of the economy? Isn’t it out of our control? Isn’t it guaranteed that IT WILL HAPPEN every now and then? Why are people acting like this is a surprise ?

I understand some lost “everything” during the other recessions but doesn’t that happen when you’re over leveraged?

There is nothing wrong with a recession after a boom - the economy is cyclical, just like high tide and low tide on the ocean. Recessions are not a bug - rather, they are a feature of the economic system.

The problem is when interest rates are held artificially low for too long, and too much money is printed - all in the vain hope that we can somehow have a "booming" economy forever, with no recession.

It would be like if you just kept drinking coffee so you never have to sleep - eventually, your body will just shut down or you will die (recession).

Yes, being over leveraged is an issue - it is bad for those who are overextended. But, it is good because it gives those who were prudent a chance to come in and buy things at a discount (if they have the cash & the guts to do so).