Inflation fears Today Nope it really is all about OIL

[dumpster56]

The index shows .6 increase in april. WELL the price of gasoline is at an all time high near 3 bucks EVERYPLACE and sorry but the only way for americans to get anyplace or buy stuff it has to be gasoline usage.

Yep prices are gonna go up!

Early retirements sure but a part time job will be a necessity forever in this supposedly great country they call america.

 

[Cool Dood]

Wait, because gas costs three bucks a gallon instead of one or two bucks, America isn't a great country?

 

[HFWR]

Well, FI-Re is my ultimate goal, but retirement is NOT an inalienable right. You need money, you work...  

 

[dumpster56]

WE need the railroads rebuilt here in america, small cars 40+ mpg and hey we could put every able bodied person to work laying track and building new trains.

Whadya think?

 

[brewer12345]

Early retirements sure but a part time job will be a necessity forever in this supposedly great country they call america.

Why? A properly constructed portfolio would take all of this in stride.

 

[Leonidas]

Early retirements sure but a part time job will be a necessity forever in this supposedly great country they call america.

Isn't inflation something we should all be calculating into our plans? Yes it does suck, but it seems to be inevitable and if it weren't oil it would be something else.

 

[LovesLife]

Speaking of a sharp drop today, is anyone buying/adding any funds/stocks to their mix? I am a little low on International and midcap.

 

[brewer12345]

Speaking of a sharp drop today, is anyone buying/adding any funds/stocks to their mix?  I am a little low on International and midcap.

I'm not interested in the indexes. Buying individual stocks that are cheap.

 

[SolidA]

Hey, when I was in Italy, those really cute high gas mileage SmartCars were all over.  Can't have 'em here, though (although I found out they might be on their way!!!).  Why is it that we whine about $3 gas prices, and yet do nothing to change how we consume the resource  Although I would probably not want to drive a SmartCar on the Ventura Freeway at rush hour, here in Minnesota it would make my 15 mile each way commute much more affordable!!

 

[Rich_by_the_Bay]

Hey, when I was in Italy, those really cute high gas mileage SmartCars were all over. Can't have 'em here, though (although I found out they might be on their way!!!). Why is it that we whine about $3 gas prices, and yet do nothing to change how we consume the resource Although I would probably not want to drive a SmartCar on the Ventura Freeway at rush hour, here in Minnesota it would make my 15 mile each way commute much more affordable!!

I drive an 06 Prius. Midsize car, adequate performance. On my 30 mile round trip communte I get 54-60mpg of regular gas. Car cost 25K, get a $3400 tax credit for 2006.

Not gloating, but there are alternatives even here.

 

[MasterBlaster]

Rich in Tampa:

So you paid $25k plus taxes and less your credit for your car.

What if you'd bought a same sized corolla for $13k then you'd come out way ahead.

You'll never recoup the extra money that you paid for the car even with $3.50 gas.

You helped save the planet but you are not saving money.

 

[Nords]

Rich in Tampa:
So you paid $25k plus taxes and less your credit for your car.

I prefer your approach, too, MasterBlaster, but I think Rich was seeing the choice more in terms of retail Lexii or Benzes. So I can't fault the decision he made.

Besides I'm having a heckuva time cycling around the island with my shopping & groceries, and there's no good retail places to park my packhorse.

 

[Ed_The_Gypsy]

What's a 'car'? Don't have one. [Here, that is.]

El Gitano

 

[ladelfina]

Get in line for a Smart car....

http://www.zapworld.com/cars/smartcar.asp

The cars come with a multitude of options, accessories and sub-models, so prices may vary subject to options and availability. Our initial supply includes many with luxury features, so pricing may be in the $25,000 range.

Hmm, while in Europe the base model Smart is $12k w/o tax at today's exchange rate. Comparable to other, "larger", small cars, like the Fiat Punto, Kia, Daewoo Chevrolet ...

But you can fit 2 in the garage, so maybe someone in Boston or NYC who's shelled out $100k for a garage condo or two could make the numbers work...

---------
Here are the most fuel-efficient new models currently for sale in Italy:
http://tinyurl.com/o9tmz

3,4 lt/100km = 69mpg (Smart)
4,1 lt/100km = 57mpg (2 Citroen models, a Peugeot and a Toyota)
4,3 lt/100km = 55mpg (Fiat, Renault, Toyota Prius)
4,4 lt/100km = 54mpg (Citroen, Ford, Kia, Peugeot, Renault, VW)
4,5 lt/100km = 52mpg (Citroen, Fiat, Ford, Hyundai, Mazda)

(mpg rounded; mixed driving)

What's fascinating to me is that FORD has no problem producing not one, but two models that get over 50mpg: the Fiesta (base price $15k including 20%IVA-- that's $12,838 w/o tax) and the Fusion ($20k -- $17k w/o tax), both with "Euro 4" emission reduction systems. P.S., these are models that run on gasoline, not diesel or other... and using today's relatively bad dollar/euro exch. rate.

Ford also has a more substantial model, the Focus (which I believe has an analog in the US).. Cost $22k w/VAT; $18k w/o.. Mileage in mixed driving= 36.7mpg!!!
The US model is listed at 26 city/34 h'way..
...the US Fusion is even worse, at 24/32 (compared w/52 here in mixed driving, 59 h'way)..!

Makes me laugh when I hear the auto mfr.s in the US saying "we can't"... They can.

anyone curious about emission std.s can go here:
http://www.dieselnet.com/standards/eu/ld.html
but you'd have to convert grams/km to PPM and I'm just not up for that before finishing my coffee.

You can search by MPG on American car models here:
http://www.fueleconomy.gov/feg/byMPG.htm
The highest mpg category listed is 40 and the only cars in it are hybrid$.

 

[BUM]

Speaking of a sharp drop today, is anyone buying/adding any funds/stocks to their mix? I am a little low on International and midcap.

BINGO! Today I'm gonna fire off some of that dry powder I've been saving. Selling off that VFINX and IBM last week was a profitable move.

 

[donheff]

from: LL on May 17, 2006, 01:20:37 PM
Speaking of a sharp drop today, is anyone buying/adding any funds/stocks to their mix? I am a little low on International and midcap.

Humm. If I keep a few years of cash for a cushion in a downcycle am I not blowing the concept by investing in equities? What if this is the beginning of a prolonged bear? It seems that if you want to try a little market timing then you need to keep a "bucket" of cash that is specifically earmarked for fun and profit.

 

[REWahoo]

Humm. If I keep a few years of cash for a cushion in a downcycle am I not blowing the concept by investing in equities? What if this is the beginning of a prolonged bear? It seems that if you want to try a little market timing then you need to keep a "bucket" of cash that is specifically earmarked for fun and profit.

So true. If this continues I know I'll have an internal battle going on between my 'testosterone-fueled stock picker' and my 'SWR anti-cat food-eating survivalist'. Could be very interesting.

 

[Nords]

What if this is the beginning of a prolonged bear?

Then, like 1966-82, your reinvested dividends will take care of the timing for you.

I'm still buying the PowerShares International Dividend ETF (PID).

 

[cute fuzzy bunny]

What if its the beginning of a prolonged bull?

 

[mathjak107]

Humm.  If I keep a few years of cash for a cushion in a downcycle am I not blowing the concept by investing in equities?  What if this is the beginning of a prolonged bear?  It seems that if you want to try a little market timing then you need to keep a "bucket" of cash that is specifically earmarked for fun and profit.

its so coinsidental that my wife and i went to see the ray lucia seminar 2 weeks ago,hes the author of buckets of money and the 3 bucket system..it seemed to make a lot of sence so just last week we rebalanced everything and filled up our buckets just before the drop...i cant believe we were so lucky to have done it....we now have 14 years worth of money in our first 2 buckets in very secure investments and 14 years or better before we hit our stock bucket...what a comforting feeling..it was worth doing

 

[donheff]

...my wife and i went to see the ray lucia seminar 2 weeks ago...so just last week we rebalanced everything and filled up our buckets ...we now have 14 years worth of money in our first 2 buckets in very secure investments

And, as I understand it, you will draw on that first bucket for current expenses but won't use it to buy additional equities, correct?

How about sharing what you put in your 1-7 and 7-14 year buckets. Then we can all benefit from the seminar.

 

[mathjak107]

well im still refining the buckets but basically we set aside an emergency fund in a "cup" of about 3 months expenses...
bucket 1 is bank accounts,cds,money markets ,ultra short term bond funds

bucket 2 i use fidelity monitors income and preservation mix.basically its bond funds,reit income funds ,income funds that may hold up to 20% equity in their mix


bucket 3 is where the action is.....i split my 3 bucket into 1/3 growth and income funds and 2/3 growth funds basically following fidelity insights growth mix and fidelity monitors growth and income mix with about 5% commodities thrown in....

im sooooo relieved right now knowing bucket 3 is not even going to be looked at for 14 years.......i used to debate with myself the virtues of bothering to run 3 seperate portfolios for 3 seperate time frames as opposed to 1 60/40 mix....well no debating anymore.the comfort level i have thru this drop is just amazing...i havent puckered once yet..in fact im looking to add to bucket 3 as im still cash heavy from selling quite a bit last week to start the bucket system and thankfully sold before the big drop ..just a lucky coincidence ....

 

[markplus4]

WE need the railroads rebuilt here in america, small cars 40+ mpg and hey we could put every able bodied person to work laying track and building new trains.

Whadya think?

New trackage cost around $1.25 Million per mile.

 

[sailor]

New trackage cost around $1.25 Million per mile.

Seems pretty cheap considering potential throughput.
Consider that one highway lane can cost up to $20 Mil per mile:

6. How much does it cost per mile to build a new lane of highway?
It depends on where you are, and factors such as land costs, people or businesses to relocate, environmental needs arising from construction such as noise walls for neighbors and storm water cleaning for streams and wetlands. It also depends on the elements in the project - are we just building a road, or are new bridges or interchanges also included?

Here's a sampling of project construction costs:

+ SR 18 widening in rural King County - about $24.5 million per mile.
+ US 12 widening south of Tri Cities - about $3.7 million per mile.
+ I-5 widening in Vancouver – about $20.2 million per mile.
+ I-90 truck climbing lanes east of Cle Elum and at Vantage – about $1 million per mile.
+ I-5 HOV lanes from Tukwila to Fife – about $7 million per mile.

These costs are for construction only and do not include costs for engineering and design and for a widely-varying factor, land acquisition costs.

http://www.wsdot.wa.gov/Accountability/2005GasTax/QandA.htm