This post may contain affiliate links. Please read our disclosure for more information.
In the middle of February, Mrs. Groovy and I achieved our highest net worth ever. The economy was humming along and my investing acumen was never more fruitful.
But then the scourge of the Wuhan virus hit our shores, a nationwide lockdown ensued, and the economy tanked. By the end of March, our once glorious net worth was down a staggering $348K.
And today? The worm has turned once again. Our net worth is only down $37K from its mid-February high. In roughly two and a half months, our net worth has gained an equally staggering $311K.
Now, I’m not normally a nattering nabob of negativity, but something’s not right. Some 40 million Americans are still unemployed, the lockdown is far from over, we’re five months away from a presidential election, and civil unrest is all the rage. How the hell is the DOW only eight percent off its mid-February high? And why was it up over 800 points yesterday?
My spider-senses are tingling. I knew something was off with the housing market and the economy back in 2005. And thankfully we sold our Long Island condo and relocated to North Carolina before the housing market and the economy imploded. And I know something is off now. The stock market is roaring back, but our country’s fiscal and cultural health doesn’t warrant such exuberance. Be afraid, groovy freedomist. Be very, very afraid.
The Bison Build
Okay, on a lighter note, I had to take a couple of days off from the bison build this week. Mrs. Groovy, the supreme allied commander, decided she wants to start a vegetable garden, so she ordered me to make a raised garden bed. Here are the results of my efforts. The bed measures 4 feet by 12 feet. The top is made from 2x4s and 1x6s. The sides are made from plain metal roofing panes cut into 2-foot tall sections.
On Wednesday, with the raised bed out of the way, I turned my creative energies toward the bison and its non-existing legs. And I’m happy to report that Becky Sue now has the beginnings of four legs. Here are a couple of pictures of her back legs. (Don’t worry. Her hooves are coming. I had to get her gams situated first.)
Final Thoughts
Okay, groovy freedomist, that’s all I got. What say you? Am I being a nattering nabob of negativity regarding the stock market? Or is my sense of dread totally warranted? Let me know what you think when you get a chance. Peace.
Dang, Mr. G. Not only are you becoming a master welder (Becky Sue will be SO happy when she can finally walk), but you’re becoming a master carpenter as well! Great job on the raised garden bed. Combined with your writing, you’ve become a true artisan in retirement!
It sounds like my portfolio has trended
losely to whatbyiurs has done. And yes, something isn’t right. It doesn’t make sense. I don’t know whether to put it all in a mattress now or let it ride, as the great JL Collins might advise. I’m always up for market appreciation, but would probably be ok if it stayed flat for the next 40 years.
The planter and Becky Sue look great. Keep plugging along.
Agree to be cautious whenever finances are inloved. Awesome job on the Raised Garden Bed. Have fun and keep on keep on. 🙂
Yours
S
The Fed’s of the world are between a rock and a hard place since 2008. They lowered rates to keep the world financial markets from collapse in 2008, which sent consumers and corporations on a borrowing binge. They tried upping rates in 2018-2019 and insolvencies jumped in Canada. They honestly can’t turn back now. World financial systems and Governments are now to big to fail. The low in markets in Mid March actually was a huge transfer of wealth from many seniors who dumped stocks and the wealthy bought them up. I don’t know if markets will correct again over the next 6-12 months, however Put premiums are considerably more expensive after Sept.
Hi Groovy. The collective minds of many are always smarter than the individual. What I mean is that the market is smarter than we are. I believe the market assumes a vaccination is on the way and there will be an end in the next 12 months. The pricing is likely based on the future and not the immediate. If there was no end in sight I think we would see a different story. Just my take. Keep a balanced portfolio (not 100% stocks) to cut down on the peaks & valleys if it helps you sleep better at night. The ride may take a little longer but not as wild. Love the garden. Not sure I want to show my better half or she’ll want me to build one and I’m not as handy!
Have you thought how much differently most will feel when kids are back in school, planes are full, restaurants are bustling and we have a Corona vaccine?
The market has discounted the most dire scenario when it declined 40% and now repricing the aforementioned scenario when we have potentially have a vaccine later this year.
Good luck with the garden!
You’re right on Mr Groovy. Your spidey sense is accurate as usual.I don’t know what’s coming. But it’s something not good. On a lighter note LOL, that raised bed is gorgeous. And it’s nice to see Becky Sue still standing upright. 😊
I’m nervous. I’ve been nervous since 2013. Fortunately, I didn’t act on it previously.
Now….
I dunno. There seems to be a large disconnect.
Or…is it that the “news” is much worse than the reality?