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.

Insights of Marketfrom a veteran investor

Recession in the US later this year or 2025?

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

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

Quote from: Herman on September 21, 2024, 10:07:43 PMThe 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.

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.

Quote from: DKG on September 24, 2024, 10:05:31 AMBuying 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.

Quote from: DKG on September 24, 2024, 10:05:31 AMBuying 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!

Quote from: Lokmar on September 24, 2024, 11:28:43 AMSorry 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.

Quote from: DKG on September 24, 2024, 10:05:31 AMBuying 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.

Quote from: JOE on September 25, 2024, 09:35:16 AMSo 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.