#52 – Recessions?, Invest NOW, Elon/TSLA, Ford, Hunter B.

June 9, 2022

Markets: 

S&P 500 down 15% and Nasdaq 100 down 23% YTD. 

Housing Market: 

  • Mortgage rates from 2.5 to 5.5%. $1m loan at 3% is $30,000 per year, Double that to get pre-tax earnings of $60,000. That means you need to be earning at least $60,000 more per year to cover mortgage interest on $1m loan. 

There is a silver lining to this market. Big downturns every decade or so make for the best 2-3 time opportunities in life to invest. 2022 is it. Fund your 529’s. Dollar cost average in.  

  • Sept 2000: 1520 - 800 Oct 2002. 47%. 
  • Oct 2007: 1565. 95% (doubled money in 5 years). 
  • March 2009: 712. 54% down. 
  • Jan 2022: 4800. 574%. Almost 6x. 13 years. 
  • May 2022: 3900. 20% down. 

Tesla: 

Ford: In another headline: Ford to Create Thousands of Factory Jobs, Invest $3.7 Billion in EV, Gas-Engine Production

  • The 3.7 multibillion-dollar investment will go to retooling factories to build newer versions of gas-engine models, such as the Ford Ranger pickup and Mustang sports car, the auto maker said Thursday. 
  • 55,000 Union auto workers. 

In Closing; 

I'm Sean Hathaway

Hi, I'm Sean

20 years of finance experience and obsessed with high quality results.

After reading, check my latest takes on Finance world

Corona Crisis – Effects on Economy and Stock Market