Profiting off the (unofficial) recession

[gadget_guy]

Anyone else using this time to scoop up great deals? Let’s hear about them.

I know the .gov still says we are not in recession, but I also some around me don’t feel that way. I have decided to use the situation as best I can for myself. We have lived within our means for years and now I am seeing the just payback for that. My latest example is getting $10,000 in appliances for $1,000! Are others here doing the same? What you are doing to profit in these bad times?

Longer version:
So my last example of “profiting off the stupid” would be appliances for the house we just bought. I priced new appliances looking to get some good stuff. Priced fridge, double oven, gas cooktop, vent, microwave, dishwasher. Retail price was a touch over $10,000.

So I happen to notice almost the exact same products (GE monogram) listed for sale by someone on craigslist this weekend. I called and discover he is in need of cash, and had pulled these from his high end house just before foreclosure sold them to a friend that could not pay and he was looking for someone with quick cash. They are a couple years old, but in great shape and just a little dirty. He mentioned he paid $16,000 for them via the builder when they built their house. Sounds accurate to me. I offer him $1,000 in cash. :whistling: He is excited to get some cash (he needed to buy some additional minutes for his pay as you go cell phone) and I am now VERY excited to get a good deal on appliances. :supergrin: All work fine, and are now cleaned up and ready to install.

He was kind of sad to see these go, and in the last year he has lost about everything. He mentioned his Porsche boxter was going to be repossessed in two days. :crying: Said he will miss the car most of all. He was eyeing my truck and flatbed as I loaded things up, saying how much he liked it. I figured it best not tell him I don’t worry about a repo man at my house since I don’t owe others money.

Now it’s onto the next item on the list. We didn’t spend stupid before, and I would rather be happy without those items I can’t afford than surrounded by expensive things I can’t really pay for. How about you? I sold my wakeboard boat a few years ago (for a profit actually) and bought a different house with that money. Maybe it's time to start shopping again and see what kind of deals I can find on another boat. Or another gun.

[PeterJasonMN]

I just wish they'd get it over with, admit it, and move on. But it's an election year and all.

[Dennis in MA]

Get what over with? Calling a recession??? It's a very specific definition.

Haven't seen much out there for deals, yet. Property still hasn't dropped THAT much, altho there is an 11acre piece of land that might be good for athletic fields for our school. 11 dry acres in accessible Massachusetts for less than 200K. THAT'S a big deal.

[OXCOPS]

If you want a truck, or SUV, now seems to be the time in most places.

[Easterbrook]

The most well accepted definition of a recession is two consecutive quarters of negative growth. We have not had that (fact), and probably won't (in my opinion).

But I have profited from this slowdown by buying up a bunch of stock in mid-july when the DJIA was dipping below 11,000.

My father also picked up a SUV for real cheap, OXCOPS is right on there.

[hvnit2gd]

Great time to buy stock. I bought DKS when it was at 14 bucks about 45 days ago. Now its trading at 22 bucks. I have made a pretty decent chunk in the past 45 days.

[mike7465]

The most well accepted definition of a recession is two consecutive quarters of negative growth. We have not had that (fact), and probably won't (in my opinion).

But I have profited from this slowdown by buying up a bunch of stock in mid-july when the DJIA was dipping below 11,000.

My father also picked up a SUV for real cheap, OXCOPS is right on there.

You get into trouble when you normalize the dollar.
You get into more trouble when you realize that those figures that make up the CPI, PPI ect have been changed.

[PeterJasonMN]

I still wish I'd bought CLF when I first opened my TDAmeritrade account.

[Dennis in MA]

You get into trouble when you normalize the dollar.
You get into more trouble when you realize that those figures that make up the CPI, PPI ect have been changed.

You also get into trouble when you don't understand the power of compounding. Or WHY the CPI was changed. (To better reflect people's actual spending habits.)

The best is this stupid commercial regarding Gold. (Not saying you are a gold bug - but you are playing into their camp.) "If you purchased a $20 gold piece in 1920, you'd have $1,000 worth of gold today - and could buy a nice suit - which is what you could buy for $20 in 1920."

Sure. Absolutely. But what if you INVESTED that $20. Assume you left it as a $20 bill until 1925, then for the next 83 years, you put it into the S&P500. You'd have $54,500. A bit more than that $1,000 of gold.

You can equate mattress investing to inflation. But you can't hold a candle to actual real investing. It takes inflation into account and long-term blows it's doors off. As long as I'm invested, you can have an "erroding $" to some extent. Ebb and flow. True investing still will kick inflation's butt.

But I digress. I have been snagging some nice Busse blades for about 20% off over the last few weeks. Still expensive, but not as much as they will be in 3-5 years.

[johnd]

Yes, cash speaks volumes.
Even though Im in the stage of my life where Im getting rid of everything, I cant resist a really good deal. Those tend to appear more when one has cash in ones hand.