Covid Stimulus (2 Viewers)

It is a terrible idea to take money that must be paid for your mortgage in ninety days and use it for speculating in the stock market. Though you didn't propose it, the same would be true for taking a ninety day tax deferral and putting it at risk. < allowing that it is possible that you are wealthy enough that losing a big chunk of three months mortgage payment wouldn't matter a bit. In which case, roll dem dice! >

This would be a bad idea in more normal times, but these aren't close to normal times. The stock market has been highly volatile the last sixty days. Down almost 40% and then back up 30%. No one can reliably predict what is going to happen in the financial markets between now and July. Though I would bet on volatility over stable prices.

This isn't anything close to a safe bet. You and anyone else who follows this path risk losing money that already has been budgeted and spent. The down side is much worse than the up side.

Why angry? Because the whole idea of a the covid stimulus was to help keep the people of the USA fiscally safe. If you do not need the help, you should not have your hand out. If you do need the help, do not leverage the assistance into a risky bet on the stock market. A ninety day time horizon is not an investment, it is pure speculation.

Please reconsider. Ditto for anyone else considering doing something similar -=- DrStrange
 
Well, here’s the thing. I would never consider it in normal times. But look at how far the market has depressed in the last quarter.

The way I see it is that the market downswing isn’t due to a fundamentally broken economy, it’s due to a generational event that will pass in six months or a year (hopefully). The individual stock prices aren’t low because the companies are on the brink, they’re low because of a relatively artificial depression in value. If you invest this money in companies that are fundamentally sound otherwise, but you can get the stock at a 20% discount, and intend to hold for the long-term, how much risk is there really?

For day traders and short-term investors, I’d agree with your assessment. But I’m 25 years from retirement and I think I’m much better served to gain value with my money in the market than in my house. This is a situation where I would essentially be taking a three month break from the payments. The three months aren’t due at the end - it just lengthens the term of the loan. All it costs is the interest.

Other factors are that my income isn’t at risk whatsoever, and this isn’t my forever home - I’ll be selling it at some point within a few years.
 
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Well, here’s the thing. I would never consider it in normal times. But look at how far the market has depressed in the last quarter.

The way I see it is that the market downswing isn’t due to a fundamentally broken economy, it’s due to a generational event that will pass in six months or a year (hopefully). The individual stock prices aren’t low because the companies are on the brink, they’re low because of a relatively artificial depression in value. If you invest this money in companies that are fundamentally sound otherwise, but you can get the stock at a 20% discount, and intend to hold for the long-term, how much risk is there really?

For day traders and short-term investors, I’d agree with your assessment. But I’m 25 years from retirement and I think I’m much better served to gain value with my money in the market than in my house. This is a situation where I would essentially be taking a three month break from the payments. The three months aren’t due at the end - it just lengthens the term of the loan. All it costs is the interest.

Other factors are that my income isn’t at risk whatsoever, and this isn’t my forever home - I’ll be selling it at some point within a few years.
You aren't concerned that prior to all this the market wasn't already artificially overvalued? A correction was eminent... Unless you are trying to score off short term gains, I'm not too sure....

This is coming from a guy that refuses to change his portfolio because I forgot my username/password a few tears ago.....(no I don't have a broker, I went to school for finance...and work in construction... so yeah I know what I'm talking about....?)
 
Yes, you play the market ONLY with money that you can afford to lose, period. In speaking with my financial advisor and many of my friends who are in the same line of work are saying it is a good time if you have expendable income. The market is not reflective of true market conditions. With all of the extra money being pumped into the economy we still have a rough ride ahead of us.

It has been a wild ride with losses and gains over the last several weeks. Luckily it is not technically a loss if you keep it in there.
 
Got mine today as well, on my normal pay day, so 2 nice chunks of change hit my bank at the same time.

Now...who has chips they want to sell me?
 
2020-04-14 13.02.10.jpg
 
Anyone see those gofundmes right after the $1.6B lottery asking for money to pay for rent and food cause they spent their income on lottery tickets? Don’t be that person. :tup:
 
Now that I think about it, maybe I’ll buy a stationary bike or something to help keep me active, but inside the house.
 
The way I see it is that the market downswing isn’t due to a fundamentally broken economy, it’s due to a generational event that will pass in six months or a year (hopefully)

If the shut down lasts for more than a few more weeks, the economy will be fundamentally broken. It could take decades to recover.
 
edit- alcohol is a bad thing
 
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Agreed 100% with your post but have a question about the quoted part:

I didn't ask and luckily don't need it, but it showed up in my account anyway. Was there an option to not receive it if you qualified?
Also wondering this and feeling like an asshole for getting a check.
 
Also wondering this and feeling like an asshole for getting a check.
Don't feel like an asshole - whether or not people accept this, it is nothing more than the government paying for information. They will get the website up Friday for people to add their info. Then the government has a full list of tax paying adults (whether they actually paid or not). Watch audits skyrocket from this.
 
I got my check. Due to prudent savings Practices didn’t really need it but don’t feel guilty. It will help put a new roof on my house once this passes. I’ll admit though it’s the wife that saves. I’d be looking to the next chiproom sale otherwise.
 
You think I'm wrong?
I think "The economy" will be what it is. It has always changed for thousands of years and will continue to change forever. It's not the same as it was 20 years ago and it is not what it will be 20 years from now. Government changes, tech changes, climate changes... fundamentally.
 

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