Stock market + alt assets plunging = ??? to your collecting or "investing"

[JRX]

Originally Posted by GlenSepper

I wonder how many here lived through stagflation. It was a long haul that figuratively culminated with the Malaise Speech.

Maybe current economic conditions will be short-lived. Maybe not.

I didn't, but my dad was a union electrician and he was out of work for 2 years in the 70s. Most people have zero conception of how bad things can get.

[pewe]

Originally Posted by premium1981

Not exactly, but it obviously helps to be able to push money into the pot when the odds are stacked in your favor. But typically people do the opposite. Our society is full of people who spend everything they make when times or good (leaving nothing left) or people who are afraid to spend when the opportunity does present itself (market dips). Its the main reason why the "1%" are able to do so well. If the rest of the population had the same mindset the value wouldn't be the same. Its the fear and/or lack of discipline that allows others to do better. The reason is lack of fear and good discipline by the few.

At a job I previously had I had a co-worker constantly make comments about "big money" because my family likes to take really nice vacations. It took about 3 minutes for me to show him that our household incomes were identical but they chose to blow their money on drinks, cigarettes, and eating out every night. He literally stormed out of the room we were in because I made it abundantly clear that there was no difference between the two of us other than choices. Again, discipline. Nothing wrong with blowing your money, but don't get pissy when others are living a better life. It's a choice for almost everyone.

sounds like the classic book "The Millionaire Next Door" - https://www.amazon.com/Millionaire-N.../dp/1589795474

[hotcalsun]

Originally Posted by GlenSepper

I wonder how many here lived through stagflation. It was a long haul that figuratively culminated with the Malaise Speech.

Maybe current economic conditions will be short-lived. Maybe not.

I suspect many here also did not live through the great recession as well as a significant portion of today's workforce.

Consumer debt went up $52B in March alone, an annual increase of 14%. Revolving credit was up 21.4%

Will get harder for many with increasing interest rates.

[hermanotarjeta]

Originally Posted by JRX

I didn't, but my dad was a union electrician and he was out of work for 2 years in the 70s. Most people have zero conception of how bad things can get.

Layoffs are just starting to peep their ugly heads again. As it costs more to run a business, the first thing that goes is salaries/wages/benefits, ie release employees.

I can't imagine it fun getting into Bowman breaks when you don't have a job.

[t206blogcom]

No matter what happens in the markets or crypto or any other investment field, there will always be a certain group of buyers who'll continue to buy and pay top dollar. With that said, given the current environment that the OP outlined, a fair amount of collectors will be forced to reduce their spending in order to pay for essentials like gas, food, rent.

[KhalDrogo]

I think the majority of Americans are utterly clueless about how bad things are about to get.

[Raleigh504]

There, fixed it for you

Originally Posted by KhalDrogo

I think the majority of Americans are utterly clueless.

[GlenSepper]

Originally Posted by premium1981

Not exactly, but it obviously helps to be able to push money into the pot when the odds are stacked in your favor. But typically people do the opposite. Our society is full of people who spend everything they make when times or good (leaving nothing left) or people who are afraid to spend when the opportunity does present itself (market dips). Its the main reason why the "1%" are able to do so well. If the rest of the population had the same mindset the value wouldn't be the same. Its the fear and/or lack of discipline that allows others to do better. The reason is lack of fear and good discipline by the few.

At a job I previously had I had a co-worker constantly make comments about "big money" because my family likes to take really nice vacations. It took about 3 minutes for me to show him that our household incomes were identical but they chose to blow their money on drinks, cigarettes, and eating out every night. He literally stormed out of the room we were in because I made it abundantly clear that there was no difference between the two of us other than choices. Again, discipline. Nothing wrong with blowing your money, but don't get pissy when others are living a better life. It's a choice for almost everyone.

I appreciate this post. Having experienced poverty as a teenager/young adult in the 1970s I vowed to focus first on owning a house (paying off mortgage as soon as possible) and having one year of expenses in CCE. I'm fully aware this goes against all conventional wisdom but it brought me peace of mind, which was worth more to me than the foregone potential returns and erosion of purchasing power of the funds.

I'm thankfully quite financially secure at this point in my life but nevertheless hope we are not headed for another prolonged period of stagflation.

[pewe]

Originally Posted by t206blogcom

No matter what happens in the markets or crypto or any other investment field, there will always be a certain group of buyers who'll continue to buy and pay top dollar.

Will this group get smaller? Will the amount they spend go down?

[MoreToppsPlease]

For the “alt investors” to profit anywhere, they need to create FOMO and/or appeal to greed…which is tough for them to do in today’s climate…but it’s a real learning experience watching them try. Apparently they’re trying to focus on “blue chips” this time around.

Mid-July to January will be a particularly good time to buy.

[Frankp2311]

High end sales are very slow for me, but low end is just as high as ever. I think the insanity of the past few years starts to cool off, and as people get more reluctant to spend their free cash on sports cards the sealed wax market will start to soften back to more reasonable prices. Maybe will take 1-2 more years but I would suspect Donruss Basketball wont be $500 a box in a few years. AT this point I don't even think group breaks are affordable.

[rainmaker]

Yeah a large portion of the population is completely clueless. But that’s for a different discussion and I imagine a fair number of those reading this would be included in the clueless category. I digress….

This is a great time to be patient and learn about markets swings. Just sit and watch. Don’t reach for anything. Let it come to you. Or liquidate if it seems time. I said this in the basketball thread but to quote the best bit of education from a song ever… every hands a winner and every hands a loser.

My play was liquidating for cash or trading cards into golden age comics back in winter/spring 2021. Probably unloaded 75% of my card collection. I’ve built it up some mainly focused on Juan Soto. But it’s feeling like another good time to sell so I’m trimming down again this time both cards and comics. If I can get 50k in the bank just to have it the world goes to #@#@#@#@ or to pump back into collectibles once the economy settles. For now my mindset is Just. Wait. Til. November.

[JeremyNick]

Originally Posted by KhalDrogo

I think the majority of Americans are utterly clueless about how bad things are about to get.

You are dead on.

There is so much general apathy to the worsening conditions. It’s amazing and terrifying.

[KhalDrogo]

Originally Posted by JeremyNick

You are dead on.

There is so much general apathy to the worsening conditions. It’s amazing and terrifying.

Things have been too good for too long that people forget what bad feels like. If you’re paying attention, you are beginning to hear companies talk about cost cutting measures. With cost cuts come job cuts. Rising unemployment when inflation is this bad is a recipe for disaster.

[Kobe101]

Originally Posted by KhalDrogo

I think the majority of Americans are utterly clueless about how bad things are about to get.

Yeah the next phase of build back better is not looking too hot

Companies are probably going to lay people off.

8% inflation is a joke. The costs of everything you actually need and buy are probably really up 15-20% to most people.

At least the cost of Stocks and Crypto are way down

[imbluestreak23]

I welcome the burn. It will be glorious

[Soxrule111]

I’m playing with some fire with what I’m doing personally and I acknowledge it and I know if I lose or get burnt it’s my money I lost. Not my house or anything.

That being said, world please dont #@#@#@#@ on me yet. I just need like 3-4 months of enjoyment then I’ll be out of both and not afraid haha

[pewe]

Originally Posted by Kobe101

At least the cost of Stocks and Crypto are way down

And soon our hobby??? :fingers crossed:

[OneSickDegen]

The solution to higher prices is usually higher prices. I think we are starting to see that in the hobby. May take some time to shake out a lot of the paper hands but we'll get there.

[JRX]

Originally Posted by Kobe101

Yeah the next phase of build back better is not looking too hot

Companies are probably going to lay people off.

8% inflation is a joke. The costs of everything you actually need and buy are probably really up 15-20% to most people.

At least the cost of Stocks and Crypto are way down

What, you don't buy used cars every month? the inflation number is maybe the dumbest single metric the government produces. Everyone has different inflation numbers. My sister has 4 kids, she doesn't care if used cars are cheaper, she's worried about gas, food, and natural gas.

[rms13]

I’m continuing to buy $2-10 cards for my PC but definitely not buying anything high end now. Sitting on cash which hopefully will still be worth something in a few years. If 52 Mantles drop like 75% I will start thinking about buying. For now reserving cash for $6 gas where I live and stockpiling cash in case we hit mass unemployment

[calculusdork]

Originally Posted by JRX

What, you don't buy used cars every month? the inflation number is maybe the dumbest single metric the government produces. Everyone has different inflation numbers. My sister has 4 kids, she doesn't care if used cars are cheaper, she's worried about gas, food, and natural gas.

CPI is "supposed" to measure the true average, but there's something about a metric being managed by the very organization with the perverse incentive to make it seem lower than it actually is ...

[hotcalsun]

Originally Posted by Kobe101

Yeah the next phase of build back better is not looking too hot

Companies are ALREADY LAYING people off.

8% inflation is a joke. The costs of everything you actually need and buy are probably really up 15-20% to most people.

At least the cost of Stocks and Crypto are way down

Fixed it.

Carvana 2500
Better 4000
Peloton 2800

The list goes on and on.

[Silent George]

Originally Posted by GlenSepper

I wonder how many here lived through stagflation. It was a long haul that figuratively culminated with the Malaise Speech.

Maybe current economic conditions will be short-lived. Maybe not.

The economy can be hard to predict, and unknown variables can change things in either direction in a hurry.

But there are a lottttttttttttttt of indicators saying this isn't short lived. And the "price gouging" bill just announced by Pelosi, coupled with today's announcement that Biden is cancelling oil lease sales in the Gulf & Alaska, well, those are not moves that will result in helping with inflation in anyway (though I suspect the former is just a political play and not actually expected to pass).

[Raleigh504]

Originally Posted by hotcalsun

Fixed it.

Carvana 2500
Better 4000
Peloton 2800

The list goes on and on.

I haven't kept track of all the companies, but most seem like younger companies with early growth and now the market is slowed down/don't need all the employees they hired.

Certain fields/industries are always needed as well as layoffs are always normal especially if you assume 3%+ raises each year and the person is doing the same job for 15+ years they will be at the top of the market eventually and will be cheaper to hire new to replace them.