Money Sense

[DKG]

Markets across this continent had a bad day yesterday. The TSX was down a half percentage point, the Dow was down 0.6% and the Nasdaq down 1.05%.

Investors are still digesting earnings data and global growth moving forward.

[JOE]

Insights of Marketfrom a veteran investor

[JOE]

Recession in the US later this year or 2025?

[JOE]

Here's an interesting economic indicator of where the economy may be headed DKG DKG:

[DKG]

The dollar fell to its lowest against the yen this year on Wednesday after investors upped the chances of Democrat Kamala Harris beating Republican rival Donald Trump in November's presidential election after a scheduled debate.

The dollar dropped as much as 1.24% to 140.71 yen, a level not seen since Dec. 28, before trading at 141.16 yen.

Investors broadly see the dollar strengthening in the event of a victory by Republican nominee Trump, as tariffs might prop up the currency.

Following the debate, online betting site PredictIt showed Harris' chances of winning improved 3 cents to 56 cents for a $1 payout, while Trump's chances dropped 5 cents to 47 cents.

[Herman]

The US Fed lowered interest rates a half point. That is a lot.

[DKG]

The US Fed lowered interest rates a half point. That is a lot.

Before a close election. How convenient for Harris.

It didn't have much affect on the markets. They had this thumb on the scale for Harris baked in.

[DKG]

Buying a rental property in America is no longer profitable. Because the current mortgage rate (6.1%) is significantly higher than the profit/cap rate (4.4%) of rentals.

This means that any investor who uses debt to finance their purchase is likely losing money on cash flow from Day 1.

[formosan]

Buying a rental property in America is no longer profitable. Because the current mortgage rate (6.1%) is significantly higher than the profit/cap rate (4.4%) of rentals.

This means that any investor who uses debt to finance their purchase is likely losing money on cash flow from Day 1.

Is that what the prime lending rate is now?

I'm so thankful we no longer have a mortgage.

[Lokmar]

Buying a rental property in America is no longer profitable. Because the current mortgage rate (6.1%) is significantly higher than the profit/cap rate (4.4%) of rentals.

This means that any investor who uses debt to finance their purchase is likely losing money on cash flow from Day 1.

Sorry for my ignorance but can you show me the regulation capping profit at 4.4%? I had no idea. Thats communist AF!

[DKG]

Sorry for my ignorance but can you show me the regulation capping profit at 4.4%? I had no idea. Thats communist AF!

Not the best wording. That is an average return.

[JOE]

Buying a rental property in America is no longer profitable. Because the current mortgage rate (6.1%) is significantly higher than the profit/cap rate (4.4%) of rentals.

This means that any investor who uses debt to finance their purchase is likely losing money on cash flow from Day 1.

So what would you suggest as an alternate investment DKG DKG? Raw land only? Farmland?

Seems like a better investment than rental property.

I read that's what all the Big Investors/Truly rich in America are doing - like Bill Gates & Jeff Bezos.

[Thiel]

So what would you suggest as an alternate investment DKG DKG? Raw land only? Farmland?

Seems like a better investment than rental property.

I read that's what all the Big Investors/Truly rich in America are doing - like Bill Gates & Jeff Bezos.

Why would you care Sugarplum. I take of the money. And don't I give you a generous allowance. Now go have a chocolate coin.

[DKG]

Last month, there were just 12,000 new jobs, below the consensus estimate of 113,000. This represented the smallest monthly employment gain since December 2020. According to the Bureau of Labor Statistics (BLS), the unemployment rate was unchanged at 4.1 percent.

This comes on top of the revelation that the Biden administration has been constantly fudging job creation numbers.

Expect the Fed to cut interest rates.

[DKG]

A survey of 119 investors found that 53% think former president Donald Trump will defeat Kamala Harris.

Investors believe fossil fuel and industrial companies should do well under Trump, the survey said.

Stanley Druckenmiller said in mid-October that markets are "very convinced" of a Republican victory.

Many of the bigwigs of finance have picked their sides, but Wall Street seems to believe one candidate has the upper hand in this year's presidential election.

A survey of SumZero's investor community — a mix of small hedge funds, family offices, private equity firms, and more — found that 53% believe Trump will prevail. The survey included responses from just 119 members, but reflects the thinking of a segment of analysts and investors influencing meaningful amounts of money. The consensus among respondents is that a Trump victory would create a favorable environment for companies in the fossil fuels, financials, and US industrials sectors.

Meanwhile, "renewable energy, ESG investments, and retail" may struggle, the survey notes. SumZero — which was founded by Divya Narendra, who started the Facebook predecessor with the Winklevoss twins in college — has more than 16,000 investors on its platform sharing investment ideas, according to its website.