Why am I, a residential investment property broker, asking this question? Because after Residential Investment Property the next biggest investment instrument is Listed Shares as per the figures below.
The US market and Wall Street appears to be focused on the MDs rather than the PhDs. Or the doctors versus the economists, the scientists versus the dismal scientists.
How else to explain the S&P 500 index’s 4.5% gain in May, or the NASDAQ Composite’s 6.8% rise that at month-end had that index just 3.3% below its February high.
It certainly isn’t the economy. Yet, from the end of May 2019 through May 2020, stocks are up, not down. Unless you believe that stocks were vastly undervalued a year ago, it’s hard to imagine how this could be.
The argument I (and countless other investors and economists) would make is that the stock market is a discounting machine, looking ahead at what’s to come rather than looking back at what’s already been.
But a discounting machine is not a crystal ball. If indeed earnings are going to “grow into” stock prices, are traders looking at 2021 profits or further ahead to 2022?
I’m not trying to sow fear but to spread rational thinking. I’m thrilled to see stocks having rebounded 35% or so from their March lows, but as a realist and adviser, I want to make sure you’re not getting too giddy with the prospect of continuing strong gains into the second half of the year.
People are always going to need well-priced shelter in some way and we have a huge selection and variety of residential properties ready to build for you the investor to enjoy a stable income ( some with a 3-year guarantee), the applicable tax benefits, and an asset that can be passed on to the family.