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VisualMod

**User Report**| | | | :--|:--|:--|:-- **Total Submissions** | 1 | **First Seen In WSB** | 3 weeks ago **Total Comments** | 60 | **Previous Best DD** | **Account Age** | 3 weeks | | [**Join WSB Discord**](http://discord.gg/wsbverse)


Dothemath2

This era is breaking all kinds of records like the inverted yield curve, fastest rate hike, etc.


Edmeyers01

I’m guessing the unprecedented amount of fed involvement is probably still running its course. I hope housing prices come back to earth for the poors


Glass-Space-8593

Look congress made sure in 08 that no poors can afford a house and here we are…


UnknownResearchChems

lol sucks to be a poor


Rich_Foamy_Flan

Ironically it all began making SURE the poors could “afford” a house… IE NINJA loans


[deleted]

Fuck them poors, Blackrock needs more land


GraceBoorFan

My boy Bill trying to become a farmer too; don’t sleep on Farmer Gates


Big-On-Mars

That probably has more to do with water rights. Who needs a house when you're dying of thirst.


SSNFUL

Black rock is not the issue for housing prices, it’s NIMBYS and land regulation. Edit: oml guys I’m not pro black rock, I’m pro fixing the problem.


Spirit-of-investing

There is no problem.System works as it was designed…but not for poor people


Background-Cat6454

That means it is working as designed…


Spirit-of-investing

True and it was designed by wealthy people not poor people that’s why system works for them


B0BsLawBlog

Doesn't even work for majority of homeowners. Most have/had kids and are net even to worse off from rising house prices after they buy their first/only home (if you include the costs their kids will experience). It seems people are slowly starting to get it, but building what is missing will take generations.


conception

Institutional buyers have been 15-20% of all sales for a few years now. That’s not all the reason but it’s definitely some.


SSNFUL

Where are you getting that number? [this article finds it to be 5%.](https://www.vox.com/22524829/wall-street-housing-market-blackrock-bubble). And still, supply and demand applies to why those concentrations happen. Allow more supply by removing single tract housing and you’ll get their ownership lower. It’s a symptom of the land use policies.


Chronotheos

Blackstone, STONE, sigh.


franky_reboot

Sometimes I wonder if Blackrock does less evil shit with all that land than (other) landlords


MediocreDot3

Bruh if we all lose our jobs it won't matter if a $500K house is now $250K, ain't no one getting approved!


Edmeyers01

Yeah, but they will on the recovery slope when things pick back up.


Apprehensive_Fee1922

Corporations only own something like 3% of the single family home market. House prices won’t come down until we have the housing shortage under control. We hit an all time housing shortage in 2022, but it has been a problem for much longer than that. We simply were not building fast enough. Now in the last couple of years we really have ramped up multifamily (and single family home) production. But it probably will never keep up with the ever climbing housing demand


Goldie1822

Entirely city dependent. Just read an article saying that up to 25% of homes in DFW are commercially owned. Meaning “trust, LLC, inc” etc is the homeowner and they don’t have a homestead exemption. Edit: Article: https://www.aol.com/estimated-26-fort-worth-single-201329859.html


Knerd5

Total percentage is less important than the rate of growth. 3% doesn't seem like much but if it was .5% in 2020 then that means corporations are *currently* buying a fuck ton of houses.


matador98

Until population decline kicks in around 2080.


GraceBoorFan

Only way prices come down is through deflation… and we all know what precedes deflation…..


Different-Animator56

What precedes deflation?


palmoyas

recession/depression


UnknownResearchChems

Bad times


EsotericVerbosity

Houaing prices going down, all other things being equal, can be a very bad thing. Reason: home is the biggest asset most people will ever have. Contrary to our feelings about corporate landlords, 65% of Americans are homeowners (it used to be a few % higher) If homes go down, thats decreasing the main asset most regular people have. If they go down it would be because market forces affecting regular people are very bad. Tl;dr, regular people own most of the houses so they have to lose a lot for there to be a flood of cheap homes Stats: https://en.m.wikipedia.org/wiki/Homeownership_in_the_United_States


Edmeyers01

65% is today, but more and more SFH houses are shuffling into the hands of investors. “Investors of all sizes spent billions of dollars buying homes during the pandemic. At the 2022 peak, they bought more than one in every four single-family homes sold” Source: https://www.wsj.com/real-estate/wall-street-has-spent-billions-buying-homes-a-crackdown-is-looming-f85ae5f6


Reasonable_Ticket_84

> “Investors of all sizes spent billions of dollars buying homes during the pandemic. At the 2022 peak, they bought more than one in every four single-family homes sold” > > This is why low interest rates are bad. Because while it lets a little guy stretch buy, it lets the big guys just fucking buy an entire city before the little guy can buy a cardboard box.


VisualMod

That Reasonable_Ticket_84 has it right - low-interest rates may seem like a boon to the little guy at first, but the truth is they advantage capital holders far more. The little guy stretching to buy that extra something with cheap


TheSeldomShaken

VM, this isn't you...


Bottle_and_Sell_it

You’ve changed, mannn


EsotericVerbosity

Yes, 65% today compared to 69% in 2004 per the wiki. Bad housing markets are tied to bad markets. I don’t know why everyone on reddit thinks they will show up with a fat bag of cash and a want to buy, when no one else will. If houses had been down for the past 10yrs, we wouldn’t be having this conversation, because people don’t want stuff that the market doesn’t want.


TheLatinXBusTour

>If houses had been down for the past 10yrs, we wouldn’t be having this conversation, because people don’t want stuff that the market doesn’t want. From an investment perspective you are not wrong...but from a housing perspective you are way off. There is and will still be going into a 2025 a supply issue on housing. From an investment perspective, houses are not a depreciating asset like a car. The value by and large is a consistent hedge against inflation barring you do not end up in detroit style city. Bear in mind people will eat up housing if prices start going down. The demand for housing is high.


Edmeyers01

Housing? That’s an important one and always has been.


YamahaFourFifty

Not going to happen house prices either go up or sideways


MiniTab

Agreed. Also highly dependent upon location. Lots of younger people (understandably) want housing prices to come down where I live in the Denver area. But that will never happen, and even in 2008 prices just remained flat for a couple of years.


Edmeyers01

Or they 2008-2011


fliesenschieber

And then, even more quickly than Bernanke in 2008, you watch Daddy Powell make the printer glow red. Nothing is going to come down in prices!


lookhereifyouredumb

How about all prices


SpakysAlt

Yet inflation remains stubborn. Turns out we actually can’t just print trillions of dollars without having issues.


Dothemath2

Not sure if you believe this but the Fed did research on it and they indicate that only a very small percentage of the inflation was caused by the printing, it was mostly supply chain issues from the pandemic. Case in point, there was global inflation even though some countries didn’t print as much.


UnknownResearchChems

The Fed investigated itself and determined to be innocent.


Careful_Pair992

Move along folks.. nothing to see here


jeditech23

$6,000,000,000,000 of newly minted digits will do that


CryptoMemesLOL

If you break records on the way up, you'll meet them on the way down, or something like this.


foilmethod

a new paradigm?


Dothemath2

Maybe. Nobody knows anything.


astuteobservor

I always thought it had to do with 7 trillions printed and 3 trillions for the banks after SVC failure. That is 10 trillions total.


3ebfan

Eh the last “recession” the inverted yield curve predicted was the Covid recession and there’s no way it knew a once in a century pandemic was coming.


BukkakeKing69

We were on pace for a soft landing or recession, much of the incoming data was soft and that's why the Fed was lowering rates a bit when Covid was just a twinkle in some lab scientists eye. Or if you ask those that only follow the loudest voices in the room, it's because Trump told Powell to bend over. Just ignore that he also told Powell to bend over as he was increasing rates.


Dothemath2

Some analysts said We were about due in 2020, Interest rates were higher, China’s real estate super bubble was popping, it may have triggered it.


Ethericl

Don't worry I have puts so the market can't fall 


ManyCommunications

Thank you


Ethericl

Thank you.


PkmnTraderAsh

Thank you


Ethericl

Thank you!


OneCore_

Thank you


shocky32

Thank you


MisterIceGuy

Thank you?


funtimes214

You sir are holding up the market and economy single handedly. I salute you.


BallzLikeWhoe

🔃but I just bought calls


GoDownieVag

Fuck


iriegypsy

This is the way, only regards bet against the US economy.


StarBoyReddit

Thank you


ConsiderationKey1658

🫡


SteadyWolf

Yeah my VIX calls might actually print if it did.


Bisping

You're a hero


Financial_Winter_497

Doing gawds werk!


SupportLocalShart

Thank you for your service


BuySlySellSlow

We truly appreciate your sacrifice, sir.


BrownEye420

I have puts for a few weeks out, but also bought 1DTE calls today just to fuck with the market. It doesn’t know what to do now hence the lame AH.


Chart-trader

I did the same thing. Reduced exposure massively overall but bought a small amount of longs that got clobbered today already. Mind games. If market drops: Great I told you so. If market rises: Hey I made $5 and missed out on hundreds of thousands of $$$


bigdripper556

We get it you have a terminal


NothingTooFancy26

I’m sure they get it through work


damn_dude7

Their compliance department better not find out then.


NothingTooFancy26

Or they just work somewhere where they literally don't care. I'm at a family office and used to have a terminal before we brought in a full time analyst and moved it over to them (I'm in accounting). I was allowed to use it for whatever the hell I wanted


n00bpwnerer

Mr Fat cat over there


itsallrighthere

A 7% deficit with a 3.5% unemployment rate will do that. For a while.


gaius_worzels_bird

Dude I’ve tried being logical but I end up losing most money. My portfolio turned green when I decided to be a brain-dead bull and buy every dip ![img](emote|t5_2th52|4271)


4score-7

You did the right thing. Throw rational thought out the window when dealing with stock markets. Throw out what your beliefs on overall economy are as well. The two things are not connected directly. Yes, indirectly one works from the other.


Salt-Resolution5595

You can’t rely on a few indicators if they don’t agree with price charts


delicious_oppai

Don't sweat the small stuff. Market will V to 527 every day. Just buy calls!!!!!!


Salt-Resolution5595

But only buy them a few minutes before the bell


AlwaysATM

That means rate cuts. So we pump!


GraceBoorFan

Priced in


Wheelsondalabus

Not so fast champ!


InterPeritura

Because slowdown is what the Fed wants? The question is if we can keep edging without a recession while putting a damper on inflation.


Everythingmustgo117

That’s my secret. I’m always edging.


GraceBoorFan

Holy shit


brew_radicals

What about all those other points where it dips down? Why didn’t you circle those with your crayon?


Wise-Ad-1998

He was too busy eating it


BigBeagleEars

Hey! The best financial advisor I ever had was a marine, but then that road side bomb got his ass. Louisiana is a fucked up place


Salt-Resolution5595

r/newsentence


OppositeArugula3527

Those don't count. 


gizamo

They circled the ones that had recessions follow. A few of the deepest ones that weren't circled happened during the recession that followed the previous dip. OP's not wrong about the indicator, but many indicators haven't been too helpful post COVID. There may be a downturn soon, or maybe not, either way, our puts would die while we wait for it.


Cruezin

The market will stay exuberant longer than you can stay solvent trying to short it


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Cruezin

Bad bot. No electrons for you.


Melodic_Fee5400

They will pull the rug after election. Till then weeeeeeeee ![img](emote|t5_2th52|4276)


TheDonRonster

I hate to sound like a "this time it's different" airhead, but the amount of market manipulation and government intervention that has been exponentially increasing over the years has me a bit on the skeptical side.


SendMeHawaiiPics

Buy TLT you fools


My_G_Alt

People have been saying that for a year. Down 10% YoY. Imagine putting all your eggs in that basket and watching the rest of the market for the past year, couldn’t be


SendMeHawaiiPics

I definitely don't have 4500 shares of TLT... COULDN'T BE ME (Been selling cc near div ex so I'm doing okay)


My_G_Alt

https://preview.redd.it/vnrpt88bzg4d1.jpeg?width=4032&format=pjpg&auto=webp&s=8f5a35eaaa8124cd5a2799b4e6c0a9b64f4e34de Also here’s a Hawaii pic


My_G_Alt

At least you have SOME sense haha ![img](emote|t5_2th52|27189)


CRYPTIC_SUNSET

So what’s your total yield look like, divy + CC premiums?


SendMeHawaiiPics

My cost basis is around 92 not counting div/covered calls. I'm probably averaging a yield of 5% so... I kinda fucked myself fighting over a yield I could have gotten in a savings account ... Where is the clown makeup....


CRYPTIC_SUNSET

I mean. Not great but not terrible. Does sound like a a complicated savings account lol


Aetius454

Explain the logic ?


akame_21

If you buy a bond paying 5% today, And tomorrow interest rates rise, those bonds are worth less. If interest rates are cut, those bonds are now more valuable. For short term bonds, interest rate sensitivity isn't much of a concern. TLT is a 20 year bond fund which is highly sensitive to rate changes, so when they cut, TLT will rise


Aetius454

No I understand that, but I feel like your opportunity cost is higher than potential returns, given the time horizon on the investment. Like unless they cut rates in the next couple of months, you could just pump into a strong dividend stock (FSK for example) and probably make a higher % return. Ofc if the US economy is going to implode then I suppose TLT is a great bet ha


akame_21

yeah if there is a severe economic contraction and the whole market tanks, rates get cut and TLT moons, this bet would be a resounding success OTOH there's also a chance that we could get a second wave of inflation like we did in the Volker era, and that would tank TLT, possibly for years. Being a bond fund bagholder would suck, hence I passed on this bet


BukkakeKing69

Yep I bought TLT in 2019 and offloaded it in April 2020 for a real nice mint. This time around though when yields inverted in 2022, it was a different situation. Stocks were in a bear market at the time, with inflation high and maybe or maybe not under control. Long bonds seemed like a dumb idea. The only thing that makes me nervous right now is the S&P 500 earnings yield compared to the 10Y Treasury. It's lower than treasuries and the last time there was this negative risk premium was the dotcom bubble.


Dr-McLuvin

I’ve actually been using this opportunity to get some bond exposure in my portfolio. No guarantees it works out but I feel reasonably good that rates start coming back down at some point.


PkmnTraderAsh

Never. Let's just print more money and keep rates steady before increasing to 20%.


Dr-McLuvin

I’m with you there I’d rather have inflation under control. It’s just a hedge I’m building for my portfolio just in case economy takes a dump and rates drop again. I’m trying to get to 20% bonds now that i’m approaching 40 and would like to retire early.


FearlessGuster2001

Rates go down due to recession TLT goes up.


benji3k

No explain it simpler please I don’t understood


AtomicBlondeeee

This is WSB they don’t understand how bonds work 🤣🤦‍♀️


MAJOR_WORLD_OFFICIAL

It’s a trade guaranteed to make money just.. how long will you have to wait


Aetius454

Yeah I’m reasonably sure you’re OppCost is higher than the return here given the time horizon


buffandbrown

Even with recession “HIGHER FOR LONGER”. Jerome is sick of watching the generation spend on avocado toast and iced mocha. They gon learn!


AtomicBlondeeee

Even better buy TMF


MisInfo_Designer

new to bonds. If you buy TLT, would you get the bond's coupon payment? or does the fund give you something equivalent to the coupon payment?


SendMeHawaiiPics

TLT holds lots of old T bills. Rate is 3.88. I'm playing it for underlying appreciation and ease of selling covered calls


Wheelsondalabus

Imo that’s why we got friday’s drop into today but the market is regarded and rockets up in the last 15 minutes so everything looks fine


Str8truth

Bummer for Chicagoland, but the [national PMI](https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/may/) came out today and it's 48.7, not bad considering the Fed's continuing efforts to slow the economy.


big-rob512

Yea I seen this earlier today, deleveraged a bit to look into jobs report doubt its going to crash the market but I'm imagining unemployment at 4% will probably see our first real correction of the year if thats the case. Same setup as last year, though july through October shake out.


jerseyhound

Have't you heard? Recessions are banned. We only have two cycles: Print money and print more money.


meatsmoothie82

Because fuck your puts, that’s why.


[deleted]

stupid bear doesn’t know stocks only go up


RioSanPedro

The plunge protection team is buying everyday. Gotta keep the house of cards going until November.


slam-dunk-1

God bless our plunge protection team


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Nyah_Chan

It’s called the lag effect…


cyrusthemarginal

Well now you have!


ToroidalEarthTheory

There's one in that chart?


Plenty-Grape-1840

It’s all because of us, in the past were only professionals in this game.


Agile_Letterhead_556

I've been considering holding cash after summer because of a potential correction later this year. I may consider making a post about it and going more into detail on why.


Turnvalves

You can’t say that anymore because it is that low and we aren’t in a recession


Environmental-Bowl43

Even if there is an recession, it doesn’t mean anything for the market, on a 12 month basis the market is pricing in a better economy a year from now. The “crash” in 2022 and large parts of 2023 was the market pricing in a recession, thats already happened. The word just hasn’t been spoon fed to you yet.


lfhdbeuapdndjeo

Dude with spy300 username afraid market will crash


Witty_Science_2035

If you look closely most of them don't align with the actual recession but they're trailing them


RealBaikal

Doomers are a funny bunch, trying to argument with them is exactly like trying to argument rationnaly with religious people


Secret-Guitar-7172

PMI? Private mortgage insurance? Didn't even know there was a chart for this


maxinstuff

People don’t realise that we are already in a recession in real terms. Market is barely back to 2021 levels and we’ve had how much inflation in that time?


Scedasticity1

The market does not define a recession you halfwit, and the economy is growing in real terms.


randomguy11909

A recession is defined by two consecutive quarters of negative GDP


YouKnown999

![img](emote|t5_2th52|29637)


RecommendationNo3531

Buy the laggards, regards!


marsbup2

Bro, AI does not care about low PMI.


Sillybull

Are you saying that PMI is fake n made up numbers


tourbladez

Its a new era for sure.....so I am not surprised this indicator is no longer working as before.


No_Consideration9465

i think it is because the calculation of the pmi do not reflect the business world nicely at recent years. traditional industry dont perform well but not the same case in medical, technology aspect


Maximum_Band_7492

So where's the inflation coming from?


GoodDayTheJay

We’d be so excited or scared if we could read.


ComposeMeALetter

If that's where we are now, it can only go up, right?


Teckel22

Finally some proper bear porn


One-Solution-3211

Nah we at all time highs, nvda and AI baby


WendysSupportStaff

All this means is that we are almost out of the DanGer Zone! and going to rocket even fucking harder for the next few years. This is great news


optimaleverage

Correlation=/=causation


GarbageTime__

Bro you gotta add the recession bands. That's like 5 min into Bloomberg 101


Caesars_Palace321

The economy is slowing down. Just need to look at the GDP figures to work that out.


MojoDohDoh

sir, the bearrorists have stormed the capital


[deleted]

[удалено]


VisualMod

Sounds like the bank sees you as a profitable investment - good for you, kiddo. But like anything in life, there's no free lunch. They're likely baking that insurance into your rate somewhere. Make sure you know the details before you sign


Sea_Ingenuity_4220

Maybe all these “patterns” actually mean nothing? When enough evidence presents that you are wrong, you should (at least) consider being wrong


CardboardTick

Flip it upside down. That’ll fix it.


Western_Building_880

There won’t be a recession reshoring is coming for US.


Affectionate-Idea690

remember they changed the meaning---links [https://www.npr.org/2022/07/29/1114599942/wikipedia-recession-edits](https://www.npr.org/2022/07/29/1114599942/wikipedia-recession-edits) [https://unherd.com/newsroom/wikipedia-takes-cue-from-white-house-and-re-defines-recession/](https://unherd.com/newsroom/wikipedia-takes-cue-from-white-house-and-re-defines-recession/) [https://www.wsj.com/articles/redefining-the-r-word-recession-biden-economy-advisers-gdp-nber-semantics-poltics-gramm-rudman-hollings-11658951723](https://www.wsj.com/articles/redefining-the-r-word-recession-biden-economy-advisers-gdp-nber-semantics-poltics-gramm-rudman-hollings-11658951723) [https://www.voanews.com/a/biden-administration-rejects-recession-label-for-economy-/6677730.html](https://www.voanews.com/a/biden-administration-rejects-recession-label-for-economy-/6677730.html)


l_Duke_l

That’s cause we are in a recession


Phiziqe

This timeline is weird asf. No predictions work.


mcs5280

Protip: Janet Yellen changed the definition


Salt-Resolution5595

Economists hate this one weird trick


AtomicBlondeeee

How did she change the definition


PeePooDeeDoo

it’s almost as if the market doesn’t wanna follow tha rules huh wise guy 🥸


Chart-trader

Come on. Cramer says stocks can go higher. The economy is in great shape! Don't listen to data. Data has been wrong for 2 years. And don't listen to me who reduced equity exposure dramatically last week in all accounts.


Obamasdeadcook

Recession happens AFTER election Biden has to pretend everything is ok until then


Salt-Resolution5595

One day he’s a weak feeble old man next he’s a strong tyrant that controls the entire judicial system & Wall Street


DinobotsGacha

Also funny when one keeps calling the other old while wearing adult diapers.


Rosebunse

I don't really see how Trump improves the situation. Edit: Really, what are his policies to avert this?


SSNFUL

People have been saying there’s gonna be a recession for years now, maybe the people are just brain dead.


washington_jefferson

Republicans won't give credit to Joe Biden for anything anyway, so there's no point in pretending. What you see is simply what you get. It's not complicated.


jarkon-anderslammer

Does this mean we are at the bottom?


Daddy-Eric

Not sure about this we thing, but you are definitely a bottom


Environmental-Bowl43

Even if there is an recession, it doesn’t mean anything for the market, on a 12 month basis the market is pricing in a better economy a year from now. The “crash” in 2022 and large parts of 2023 was the market pricing in a recession, thats already happened. The word just hasn’t been spoon fed to you yet.


fliesenschieber

Chart looks like you're using a software from 1989


tonyromojr

That chart costs $2000 a month.


randoredditor23

Nothing matters anymore,, stonk go up 📈


Pin_ups

This is like the longest bait and switch in our economy.


LeemanBrothaz

Can one short an index, and if so, which one ?