Summary
The stock market looks expensive at roughly 22X forward earnings. Despite all the volatility in recent years, the main lesson from this post is to keep on investing, no matter what. I'm constantly updating this post as conditions change, so book mark it if interested.
The 10-year yield is currently at 4.5% and Fed Chair Jerome Powell has hinted at Fed rate cuts starting in 2H 2024. For now, investors can get up to around 5.4% for a one-year Treasury bond, which is fantastic.
The huge year-end rally in stocks has pulled forward the expected performance in 2024. The forward P/E of the S&P 500 is now about 22X, higher than its 17X long-term average. Private investing forces you to invest for the long run.
I'm bullish on real estate in 2024 as the sector plays catch-up to stocks. With mortgage rates coming down, demand is going to rebound. Depending on where you are in the country, prices and rents are down 3%-18% from the highs. I strongly believe real estate prices will catch up to stock prices.
The key to becoming a successful investor is to consistently invest for the long term. If your gains are sufficient to cover your intended goals, it's acceptable to consider selling. The objective is not to accumulate money endlessly but rather to utilize your funds to enhance your quality of life.
