The stock market is near an all-time high, while unemployment is up and wages are flat. It begs the question: is the stock market overvalued? I’m not a stock market expert, I don’t follow the market like some people, but I do know a few things. A share of stock is a piece of a company. In that regard, it is not that different than owning real estate. When you buy an investment property, you don’t look at the value of that property every day, you are more interested in the rent it earns and the costs associated with maintaining the property. The same should be the case with stocks. You shouldn’t look at the price fluctuations of the stock for a company, rather you should look at the earnings and earning potential of the company itself. If you are a day trader who is looking for short-term opportunities, we may be looking at a correction pretty soon. Economic growth has been anemic, even prior to the pandemic, and without major changes to our immigration policies or major breakthroughs in productivity it will be hard to see how valuations will get better in the short run. If you’re a long-term player a good index fund or the right financial advisor, you can still find you some great opportunities. BTW – the winner of the election won’t matter all that much. In his first 43 months in office, the S&P 500 index under Donald Trump increased 49%. That’s a pretty good gain; however, under Obama, the S&P increased by 70% in his first 43 months. Fiscal policy matters for a lot of things, but stock prices don’t seem to have as much of a correlation to politics as most people think.
I believe deeply in taking the high road; it is rarely good to lose your cool, especially in business. It’s part of what we call emotional intelligence…However, it’s not always best to walk away from a fight. There are some things worth fighting for, and for the right reasons…Historically, NAHREP has been friendly with consumer groups. We have not always agreed on everything, but I respect them and have worked hard to have a good relationship with them. But…
I believe deeply in taking the high road; it is rarely good to lose your cool, especially in business. It’s part of what we call emotional intelligence…However, it’s not always best to walk away from a fight. There are some things worth fighting for, and for the right reasons…Historically, NAHREP has been friendly with consumer groups. We have not always agreed on everything, but I respect them and have worked hard to have a good relationship with them. But…
I am a big believer in being authentic and original…Last year, I started playing with an idea about how entrepreneurship can close the minority wealth gap in America. I floated an audacious idea that the wealth gap poses an existential threat to America’s leadership in the world economy. That was an attention-getter! To develop my thesis on how to close the wealth gap, I thought about my observations in the housing industry. I realized that…