Stock market appreciation in 2024:
1Y Nasdaq Gain 40% (6000 gain out of 20000 came in the year ’24 alone; 46 Price per earning vs. 27 at the same time last year)
1Y S&P Gain 30% (1400 gain out of 6100 came in year ’24 alone; 1Y P/E 27.87 vs 24.59)
What happened in 2024? AI? US Elections?
How much of this is truly sustainable? What is the average P/E over a long-term period? Is it 20 or 30? Can the Nasdaq companies sustain the same earnings or higher for 46 years?
Maybe they will. But maybe not. Do you want to risk it all?
Ten million plus workers (technical and business) are in the tech sector. Much of their wealth (sweat and equity) is at risk and tied to the Nasdaq index.
This worker base can exploit the generational wealth transfer in real estate. Older landlords are unable to transfer their wealth and ownership due to estate tax, the younger generation’s indifference towards real estate, and myriad other reasons.
34% – a large percentage of the American workforce – immigrants (both legal and illegal), low credit score applicants, short-term stay residents, geographically uncertain, or frequently transferred – need rental housing.
Growing up, I learned that housing, clothing, and food are the three essentials for human survival. Do you want to invest in one of these three essentials rather than the next big “spin” from the tech giants? They will keep making money from these spins, but will you?
Something to think about when adjusting your portfolio in 2025!
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