Anybody Buying Yet? Where’s the Bottom?

[Addicting]

Before making the decision, I would do this.

Take your expected age at retirement, subtract your current age.

Apply that number to what 40,000 would bring after those years at an annual rate of return you select (something like 8 percent would be what I would use).

Still make sense after that?

The lesson I try to impart here is you should not look at what the money is worth now--but what it will be worth in the future.

I did that. I will be mostly dead by the time she can draw it. Gotta get it before St Peter calls. Lol

All kidding aside we chose the financing route. There was too big of difference assuming a 10% compounded rate.

 

[406dn]

Interesting chart and article from today on Reuters:


View attachment 412049

A proof reading would have made the pie chart more correct. There is a subset of 50-99% and another of 90-99%. Obviously, the subset of 50-99% would hold more stocks than a subset of that group.

The chart does illustrate that the top 10% of wealth holders own almost 90% of the stock wealth in the country.

 

[406dn]

Adding to my last comment, if the top 1% was split into smaller subsets, it would show that the top 0.25% likely holds as much wealth in stocks as the remaining 0.75%.

 

[jryoung]

File under "what a tangled fuggin' web"

So the OBBB removed the $7,500 EV Tax Credit that was overhauled just three years prior with the IRA

The IRA created strict battery production requirements including minimal assembly requirements and finishing needed to occur in the US AND sourcing of materials in the US or those we had free trade agreements with and layering on beginning in 2025, vehicles with critical minerals that were extracted, processed, or recycled by a foreign entity of concern are not eligible (China).....Seems like a good policy to boost critical mineral supply chains and support domestic manufacturing.





Because the Lithium Iron Phosphate supply chain is controlled by China, much of the batteries produced were Nickle Cobalt Maganase, which were more expensive, more volitile and less efficient. Not a good thing.

So when the OBBB wiped away the EV credit, it also removed the foreign entity of concern limitation, opening the doors for Chinese supply chain LFP (not America First), but at the same time cheaper, more efficient and more reliable batterys.

So many layers of complexity get buried under headlines and partisan tropes.

 

[Bonasababy]

File under "what a tangled fuggin' web"

So the OBBB removed the $7,500 EV Tax Credit that was overhauled just three years prior with the IRA

The IRA created strict battery production requirements including minimal assembly requirements and finishing needed to occur in the US AND sourcing of materials in the US or those we had free trade agreements with and layering on beginning in 2025, vehicles with critical minerals that were extracted, processed, or recycled by a foreign entity of concern are not eligible (China).....Seems like a good policy to boost critical mineral supply chains and support domestic manufacturing.

View attachment 412066



Because the Lithium Iron Phosphate supply chain is controlled by China, much of the batteries produced were Nickle Cobalt Maganase, which were more expensive, more volitile and less efficient. Not a good thing.

So when the OBBB wiped away the EV credit, it also removed the foreign entity of concern limitation, opening the doors for Chinese supply chain LFP (not America First), but at the same time cheaper, more efficient and more reliable batterys.

So many layers of complexity get buried under headlines and partisan tropes.

It only makes sense if you toss out the norms, e.g. that changes should be made for the benefit of most people.

Its all about money for the already wealthy or supporters of Trump and Project 25. And convincing people to ignore the reality.

Thats how you can talk about the very legit concerns of Chinese influence while at the same time benefitting them with their actions.

 

[LopeHunter]

A proof reading would have made the pie chart more correct. There is a subset of 50-99% and another of 90-99%. Obviously, the subset of 50-99% would hold more stocks than a subset of that group.

The chart does illustrate that the top 10% of wealth holders own almost 90% of the stock wealth in the country.

Also, the chart deals with but one asset class that contributes to wealth.

What about publicly traded stock holdings held by non-profits such as college endowment funds or pension funds? What about trust funds that are not owned by the beneficiaries but currently distributing proceeds?

What about non-public stocks such as privately held companies which could include large farming operations, accounting firms, etc?

What about real estate holdings including primary residences which can be 50% of a person’s net worth and dwarf their public stock holdings?

What about bonds? Annuities? Precious metals?

Here is my observation. America has a growing “have/have not” wealth divide at the same time there is a growing distrust that the two-party system cares about equity in opportunities for have nots.

The shrinking middle class (which is a community-based safety valve to diffuse radical reactions such as violent revolts) means there are fewer influential adults on a community who care to not see a revolt happen.

There is a lot of anger which spans the entire have not community whether are fan-boys of MAGA or Bernie or micro-betting or hitting a bong all day.

Young men living in the basement of relatives while not getting a lot of dates leaves a lot of testosterone to focus on breaking things including heads if a leader arises to motivate action. What does a 25 year old watching his odds of financial success and starting a family have to lose by attacking what they view as a rigged game that needs burned down then rebuilt in a “fairer” system.

This usually ends badly for everyone as chaos opens the door for a leader to rise (i.e. Lenin, Castro, Peron) that then shifts from promising equal opportunity to merely shoring up power and systematically silencing the masses through violence.

The current situation leaves the haves to invest in more security features such as hardened transport vehicles, armed security teams creating a bubble of safety for the haves and isolating exposure to the have-nots.

Zuckerberg spends millions PER DAY to be isolated and stand on elevated platforms in pictures to appear taller while sparring physically with trainers to achieve delusion he could dispatch a few gang members with his hands and feet. Good luck with convincing the mobs with pitchforks crawling over your compound’s walls to engage in gentlemanly combat one at a time. That is not how things end.