November Financial Markets

Year over Year Price Changes:

  • Nasdaq: -30.47%
  • S&P 500: -15.73%
  • Cash – Inflation: -7.7%
  • Bitcoin: -73.14%
  • Median Home Price:  +6.6%
  • Rent: +7.8%

Market Thoughts:

The rapid increase of interest rates has been pushing both stocks & housing down. Inflation is still sitting above the Fed’s target of 2-3% even with the aggressive interest rate hikes we’ve seen over the past few months.

The good news is that month over month inflation is finally starting to slow down, with a lower than expected increase in October of 0.4%.

I remember watching an interview with Jeff Bezos where he was talking about what happened to Amazon during the Dot Com bubble crash in 2000-2001.

Amazon’s stock was going down just as the rest of the market was going down, even though Amazon itself was continously growing and expanding faster than ever before.

In other words, the company itself was doing great, but the price of the stock was affected by the overall market sentiment.

Later on, Amazon continued to grow and now the stock is worth significantly more. Investors who bought at that time when others were afraid ended up making big profits.

This is exactly what’s happening in today’s markets, especially in Real Estate.

We are seeing great properties that are selling at huge discounts. The fundamentals haven’t changed. We will likely continue to see great opportunities over the next few months as interest rates continue to increase.

Cash is losing value everyday. At today’s inflation rate, every $100k in cash is losing $641 per month. 

We are continuing to be big believers in Multifamily Real Estate, especially at times like this. It’s important to not let market emotions affect your investing decisions. You don’t want to sell when everyone else is selling and buy when everyone else is buying.

Focus on fundamentals and have realistic expectations.

If you’d like to see future Real Estate investment opportunities, be sure to create a FREE investor account to get immediate access at https://modelequity.com/invest

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