The Investment Thread

[Fear The Chorizo]

18 hours ago, wallus said:

Stonks go up?

I'm not entirely sure why inflation and gas prices have not effected the market more. This is why I just invest every week and not try to figure it out I guess.

It's because demand for those products remains high globally, and will continue to do so.  The fact the US is once again a large producer of oil & natural gas helps our broader economy weather these storms because O&G sectors reap the benefits of global price increases.  That doesn't mean refined products wind up being cheaper stateside, so that does hurt US consumers in the short term.  If gas prices get to a point where they themselves crater demand and the ongoing supply concerns with Hormuz aren't yet solved, then the market will be effected.  If the supply strain in Hormuz gets figured out before demand craters, expect to see a gradual dip in gas prices despite it being summer over the next few months - when markets then realize there's alot more stability in the global oil markets due to events with Venezuela and the middle east over the past year, $60-$70/barrel of oil will be baked into the global economy despite continued demand increases from predominantly Asian markets and we'll return to $2-$2.75/gallon gas in most states that don't tax the living hell out of it, or are on the verge of intentionally restricting access to it in the next few years.  CA seeing its refining capacity diminishing is going to really punish the west coast in the next few years at the pumps regardless of what the price of oil globally drops to.

Markets and people's pocketbooks are two totally different things.  Unless you're within a couple years from retirement and need to cash out your investments not far off their present value near all-time market highs, stay the course and keep on with the DCA approach.  There's gonna be some continued volatility until things stabilize with Iran (not necessarily regime/conflict, but steady flow of oil through the Strait), but I don't think we're going to see an actual "correction" - which at present would be a market dip back below 40K.

I posted two months ago when you were nervous about a huge downturn "soon" that March and part of April would likely be rough before the market would bounce back - there isn't yet oil supply stability in the Middle East and the markets did exactly that.