The Dow Tops 25,000!!! 2018 Will Be Awesome For RE Investing!!!

12 Replies

Yes! The Dow Jones Industrial Average just topped 25K! It will be an incredible year to add RE to the investment portfolio!

Love to hear your thoughts about RE for this coming year.

Best of profits to all BiggerPocketeers!  $$$

Daniel F. Harb, ARRT,RT(R)

Dow?

I wouldn't base too much on the performance of the stock market.

Anthony G., I am not basing it on the Industrials. The Dow just topped 25K! Period. And 2018 will be an excellent year for for RE investing! Period.

Cheers! 

Daniel F. Harb

i think the op means when this record bull grenades! The stock market has never ended in the green 12 months in a row like 2017, he is expecting a pullback to allow value investing in r.e. again? Or 18 will see everyone pile in the stock market, typical of speculative bubbles, and leave us life long r.e. investors with less competition?

Excellent input, Will G!

Best!

~Daniel 

2017 was another year in the green for the stock market. People have been predicting it would crash for years now haha.

The Tax Cut and Jobs act will significantly lower corporate taxes, which could greatly contribute to another bull year for 2018.

It's great to stay diversified and take advantage of both RE and stock market investing.

I think the stock market is going to be up this year, but far less dramatically than in 2017. I think 2019 it will be in a downswing.

Exactly, Jeffrey A. & Brian S!

Too right. No matter which way the Market goes, we're prepared!

Best in 2018!

~Daniel 

I think long term I’d like to eventually settle at about half my investment portfolio in stocks/bonds and the rest in REI. For the people who just preach REI and just bash the stock market are missing out on a lot of money lol.

Diversification is your friend, don’t forget that

Well said, Caleb H! Diversification is imperative. My Index Funds have returned 29.89% over the last year & 15.92 over the last 5 year period. Let Index funds sit for the long term and you will make a lot of money. Just like Warren Buffet says, if you are the average investor (which he says, I think, 96% percent of people are), dump your money in Index Funds. He's worth, what, 75 Billion? :)

Of course, have RE in your portfolio as well!  $$$

Best to you,  Caleb!

~Daniel 

On Monday, a buddy of mine sent me a link to a story in the most credible news source I know of in our modern world, The Onion. And because my mother taught me to share: (I am pasting, since a link would likely get removed soon.)

“WASHINGTON—Fooling themselves into believing things were going to be turning around, delusional sources reported Friday that 2018 will be the year it’s all going to fall into place. “No ifs, ands, or buts about it, everything is finally going to come together in 2018,” said Liam Thomas of Margate, FL, echoing the sentiments of others nationwide who had also completely lost touch with reality and had absolutely no evidence whatsoever to support their optimistic claims. “I just know that things are going to start happening for me. I laid the groundwork in 2017, but 2018 is when my career’s gonna take off, I’ll start eating right, and I might even meet that special someone. Yeah, it’s going to be great.” At press time, sources had already reportedly decided not to make the same mistakes in 2019.”

Happy investing, people, whatever your vehicle! I am off to the gym; they have Seinfeld reruns all day, and I can hook up my earphones to the massage chair I work out in, so other machines won’t bother me.

Agree with @Caleb Heimsoth and @Daniel F. Harb assessment. This is a real estate forum but surprising to see how much proper asset allocation focused towards a healthy mix of ETFs/index funds (and a mixture of RE products) gets bashed here. Most people think, stock market = stock picking which is stupid IMO.

There is a reason why the all of the biggest players (even in RE) gravitate towards the stock market, in one shape or form. 

Given a reasonable asset allocation, emotionally stable personality and a decent time horizon, combination of index funds/RE will beat either index funds or RE alone, 9 times out of 10. 

Plus, there's something to be said for peace of mind that comes with stability and diversification.

Well said, Al D., and Omar Kahn!

Diversification is key and preservation of capital is King!! I love Index Funds because they capture the entire Market. 

Cheers!

~Daniel 

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