Thread regarding ExxonMobil Corp. layoffs

O&G is only one industry. Don’t be so inward focused.

If you are ok with slow but sure, new money in fixed income investments will eventually catch up with inflation, after the Fed cries uncle and admits the monster they created can no longer be caged. Back to the good old days when 4-6% CDs and muni’s are safe havens. Existing non-indexed fixed income investments will be available at large discounts. Lots of pain for some means these can be picked up for pennies on the dollar for small to medium returns. Obviously gold is an inflation hedge. If you have the cash, real estate performs well in such times. Inflation usually makes a hard run, then slacks off a bit, so stay short and nimble if you are under 50. Otherwise, buy that retirement home ASAP, lock into anything that meets your retirement goals, reduce equities exposure and enjoy getting off the market roller coaster. My two cents.

There is a stream of loose money out there looking for real estate. Every time I visited the Woodlands it seemed a world apart just plain nice little wonder it holds value. Colorado seeing high real estate price increase also resulting from displaced CA and rise in finance/ tech. Many Boomers may have been pushed into retirement so they may be pulling the trigger on warmer houses.

Off Topic

Thanks @rsp+19ibZ636 .. OP here

I think that is a good general strategy One question:

You will earn 2-3 times these rates with low risk investments once inflation hits

What do you consider 'low risk investments' in an inflationary environment?

This is a question which I have pondered for while now. Short term, inflation protected bonds, is that the way to go? I'm just not sure. For years I have had most of my $ invested in QQQ's (index technology fund) and it has done mostly really well, year-after-year But, I'm not sure how index technology funds would perform with inflation.

Good luck!

Folks, don’t pay off or pay down your mortgages in this economic environment. Two reasons:

(1) mortgage rates are incredibly cheap at 2-3%. Get all of this cheap debt you can afford. May never see these rates again once inflation hits, which it will, likely with a vengeance. Refinance for a term as long as you can get, at least 20 years. Now is the time for both individuals and businesses to borrow, borrow, borrow at cheap rates. You will earn 2-3 times these rates with low risk investments once inflation hits, whether that is in 12 months or 5 years. Easy money.

(2) if there is any risk to your job or income, your best friend is liquidity. If you have a bunch of equity in your home, the only practical way to free it up is to sell. Don’t back yourself into this corner. Never, ever put severance money into something illiquid like a house unless you already have plenty of cash laying around. Have it close at hand with no strings attached. And refinance before you get laid off. It’s a no brainer if your current rate is 3.5% or above. Prepare for uncertainty. Come or not, you will be as ready as possible. Hope this helps those struggling with such questions.

Not only that - but Tejas may be its own Country soon!!!
Good to get in at the re-start of that.

Ha! We just got our third full price cash offer. Where is all money coming from? Seriously. There is no slow down here that I can see. Also, I have recently heard that things have stabilized some what in the oilfield and some are being called back. I guess we will see.

21. S. Department of Labor showing workforce gains and losses as of December 2020 from the 10 most populated states. Only Texas saw a gain.

Yes, what you are seeing is real. This place feels very buoyant, it’s now breaking out to the upside in some areas. Owning real estate in The Woodlands and other areas of Texas (Austin, Dallas) is paying off for some. The oilfield in Houston is no longer the only game in town, far from it . Medical and tech companies are moving here. HP headquarters is moving adjacent to The Woodlands. The building boom in medical services and hospitals continues. it is real.

Compared to some areas, you can still get a nice home here for a good price but that is changing in this area.

After a year of oilfield blood and the COVID 19 sh!t, I’m finally feeling like I can start breathing again. School in this area having been open for months.

Oil is not going away, many will make a living off the industry for some time to come. I got laid off 6 times and still managed to retire financially independent from the oil field.

Life is good and it’s real.

I know a few people from New York that owned restaurants and have moved to Houston due to the lower cost of living. The pandemic is putting many bars and restaurants out of business so they decided to take their money and buy real state in Houston for rentals.

A lot of non US citizens are rapidly buying property in the US since the pandemic. Many people who lost their incomes are having to sell and the interest rates are low right now.

The United States is printing and dolling out the USD as reserve currency (stimulus, tbd infrastructure, low rates, QE, low taxes). Bond holders overseas and all over the country will be wiped out, while those within the US with assets (real estate, stocks, gold - almost anything) will become rich at the expense of bond holders and creditors. It will be painful for them to be paid back with 20% depreciated dollars at 1% interest rates

Bad time to be a bank, we'll see what happens.

Free money speaks, lots of international buyers came during the 2008 recession - chinese, Russians, mexican. Same thing happening perhaps.

Also lots of coastal tech money looking for low tax areas like georgia, texas. My friend from california who works for netflix makes $500K a year. Looking to buy 2-3 condos in Austin and Houston areas.

Plus the stock market trading frenzy. Many have made some good $$$

A lot of pain out there but purely speculating. I have been trading and seen good returns, used it to pay down mortgage. Who knows when EM will fire me.