Stop freaking out about “the recession”

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I sold all my stocks so that I have more money to buy stocks when the recession hits. That was in 2015. I only need the stock market to drop by ~33% so I can buy in exactly where I was four years ago. I know that if I hold out I won’t lose money in the long run. Right?

Senno_Ecto_Gammat

I mean, fear for a jobloss. That’s a pretty big one to be fearful of.

GANTRITHORE

It’s always very clear that 95 percent of reddit was in high school (or younger) during 2008. Any stock market pullback of more than 3 percent or doom porn indicator (yield curve, GDP, etc.) being talked about by the media sends people here into a total and complete panic. It makes me wonder what people here will actually do in a real recession. There’s going to be a lot of dumb buying high and selling low. It seems reddit only supports “don’t time the market” until their portfolio is down 3 percent. The hysteria is unreal.

thejourney2016

My only question is about real estate. Should I nor be buying in this market?

TequilaBiker

There are examples of bubbles in our economy today that make a recession more disturbing. ~~40% of American’s don’t have savings~~, we have a sub-prime vehicle bubble, we have a student loan bubble, we have a corporate debt bubble due to debatable interest rate management by the fed. Our fiscal and monetary policy tools are weaker than they were in the 80’s. We have 20 trillion dollars in debt due to tax cuts and increased spending. How many bailouts can we do this time around? Fed was so conservative on raising interest rates that lowering them from an already low amount will not generate the easing that occurred in 2008. I make zero claims to confidently know what’s going to happen. Maybe we don’t go into a recession anytime soon. But we have enough data to know that these recessions when they do occur, are going to be more painful as our economic foundation, tools and safety nets wither away.

PBJIsGood1