Stock Market impact

Aloha,
I wonder what will be the various impacts on UA ticket sales, donations, NIL donations, etc…due to inflation, worsening economy and Stock Market retreat? I suspect it’s going to be rough for the next few years.
UA…Campus of Champions

It’s knocking the hell out of me.

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Me too!

Since you mentioned an economic issue, travel costs for our athletic programs must be soaring too.

Doubtful it will have a big effect on ticket sales, donations, or such. I don’t remember 2007-2008 being down due to the economy, and this won’t be anything like that, heck, we still have a long way to go to hitting 2300 on the S&P from March 2020.

I’ve not told Suzi how bad we’ve been hit. She’s better off not knowing.

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I can’t make myself look. :tired_face:

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Lots of money being made out there. Lots of corporate debts being paid down and CEOs getting bonuses and raises.

When 2008 hit and colleges were impacted courtesy of endowments it was noted that many of the finer institutions had really well-constructed portfolios that helped hedge against the downturn. Some schools, however, had been too aggressive trying to grow their endowments and really got burned. The pandemic impacting enrollment and on-campus learning (especially including dorm living) helped shovel dirt on the coffins for some smaller schools.

Education has had a really wonky (being polite) long-term business model for a long time. Too many schools presumed unlimited growth of either students or revenue. Both have shut down for many schools. It put pressure on the endowments to help sustain the schools. UA is somewhat fortunate - it has been able to sustain really impressive growth to enrollment and its endowment, all while growing its reputation/status nationally.

That is only an impact if someone has to sell their investments to buy tickets. Otherwise investors just stay calm and ride this out. It will come up again. No reason to panic unless you need to sell your investments to generate cash,

Me too. I was honestly thinking of retiring in about a year. Not gonna happen. Not sure when it will but maybe as much as 6 more years.

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I just rolled over a 401k. Does not matter unless you need it. I prefer to look at it as points not dollars.

Money is a most delicious topic. Sad but important events beginning with the infamous meeting on Jekyll Island (great book, Creature from Jekyll Island by Griffin) when Wilson and his cronies created the Federal Reserve. Then in 1933 FDR confiscated gold at about $21/oz and then set the price at $35/oz- robbed the American people and then took US off the gold standard. Then in 1971 Nixon did his dastardly deed of gutting the Bretton Woods Agreement and set the dollar afloat. Now we have 100% fiat money, and our money supply now grows by the trillions. You can imagine what that does for the purchasing power of our dollar.

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Between the market tanking and inflation, my sports entertainment and travel budget has been drastically slashed!

Aloha,
Same for millions of us. Unfortunately, without any immediate policy changes our economy is only going to get more challenging.
UA…Campus of Champions

Stocks have increased significantly for the past few years. Since the beginning of this year, they have taken a very large downturn, but not to the base levels of several years ago. Have many of us actually lost money or just lost compared to what it was worth at the beginning of the year?

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In March 2009, the S&P 500 was at 768.54. By the time it peaked last winter, it had gone to 4818.62. My math skills are not what they once were, but I believe that is a 526% increase in 12+ years, with both parties having been in charge.

For me, it mostly a matter of bad timing. I was hoping to retire in a year or 2. That was with a set number I had in mind. That number was going to a little stretch to get to in a year or 2, but was not outside of being possible. Now, no way in heck. Will it come back? History says it will. I think it will. Will it come back and grow to that number I had in mind within the next 2 years? Nope. Will I survive? Yep! :slight_smile:

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As long as we have our health, we remain in the game. I love every day I awake, and I tell the Lord, thank You. Markets are a blast, like a good chess game.

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Yes, like most, I am still up considerably over the past several years. I have always lived frugally, and have been able to live the last few years without a traditional job. Part of that was from drawing down on an IRA that had grown substantially. I did sell some stock in that IRA at the beginning of the year, and wish I had sold more. I don’t like selling into weakness, so for now I hold. I am now juicing a little into my account by selling call options on a couple of stocks I own, when they rally and buying them back cheaper on days like today when they tank. Still, it is a little jarring to see the value of one’s account decrease so substantially week to week.
Throw in inflation not seen in over 40 years, and I am reluctant to spend money on non essentials these days. I do have my health, a great church, and a wonderful little town to live in. So on balance, I consider myself quite blessed.

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Selling the covered calls is a good thing if done correctly. I’ve dabbled in it some. Congrats on doing it. It’s as if you are renting your stocks and getting paid to do so.