Investors following whats going on in Wall St?

Question

Hey Guys-anyone else think what is going on with the stock market is just simply weird? Another great reason why we love real estate is we have a lot more control on the asset class directly (or indirectly with partners in syndications).

Tushar P. · Answer

For anyone who has not been benefiting from the stock market bull run and volatility, it is always going to be easy to say that stock market volatility is the reason to stay away from it and therefore real estate is a better investment 😏

Account Closed · Answer

Hey @Toby Khan,

I totally agree that the stock market is acting unusual.  It appears that with a lot of the government stimulus bills being passed many people are investing those extra funds into assets such as stocks, ETFs, low-cost index funds, and other financial securities. But this emotionally-fueled investing mostly from fear is elevating the market value above the intrinsic value of these various financial securities. At the same time because the government is continually "printing" more money than they have through the sale of treasury bonds that drives the yield curve rates on those bonds down. Not to mention that the covid pandemic has sparked a lot of uncertainty in investors raising the demand for those government bonds higher and driving down the interest rates even lower. The point is that usually when the stock market is doing well the government has to increase the interest rates on the bonds to incentivize their purchase, and when the stock market is doing poorly the bonds have lower interest rates cause of greater demand for them. But right now due to covid we have a weird circumstance where the market is "doing well" (not really though) and the bond's interest rates are low. Either way, I think it would be best to start building up some cash reserves on the side to capitalize on the inevitable true bear market that is to come. All the best.

Erwin F. · Answer

I don't think the stock market is acting "weird".  I think the stock market is performing exactly how investors FEEL towards the short term.   I dollar cost average into both stock market and real estate.  So I guess it doesn't really matter what either market does in the short term so long as I have ample reserves.

Carlos Ptriawan · Answer

real estate is not always better than stock market, if you know how to play the stock market well like what the banks and professional did and with fully hedged position, it's actually safer than investing in real estate game. Of coz if you buy GME at 300 one will say real estate is better ha ha .. lol

Steve Morris · Answer

these mushroom groups in reddit and webull forums are going to shake up the stock markets...

Dunno GME is about 15% of peak and Silver is coming back down.  I think it may move the market, but like any "story" stock, they fall back to earth.

Sachin Amin · Answer

Here's my analogy - "Robinhood People" - we "the small guy" kicked hedgefund's a**

Robinhood users - 13 Million

Avg balance - $10,000

Robinhood Pot Money - $130 Billion

that's enough fire power to take on any stock and any hedge fund out there - the crowd decides the rise and fall of any ticker symbol - definitely risky but it has opened up a new equation in the stock industry....

and these mushroom groups in reddit and webull forums are going to shake up the stock markets...

and yes the COVID + stimulus checks played a factor as folks were sitting home on thier apps - load up Robinhood with $600 stimulus check and Fire up :-)

Steve Morris · Answer

I don't think it's weird, thinks its inflation for rich folks.

Rich(er) folks will put their money in stuff like stocks, real estates and collectibles - All of which are going up faster than inflation.

Matt Moreland · Answer

Yeah, agreed. All the more reason to invest in real estate.

Max T. · Answer

I just so happened to pick up some AMC as part of my "Covid Rebound" stock picks (which I plan to liquidate in 12-18 months). AMC was 2.17/share when I grabbed it, well before all of this Reddit YOLO stuff took off.

Corey Peterson · Answer

Super weird. Here's an email we wrote on the topic.

You may have heard a lot of buzz around the almost forgotten video game retailer, GameStop, the last few days. The big squeeze may have even affected you. If you're not aware of what exactly is going on, we have found a few articles explaining the situation.

   CNBC-GameStop mania        explained: How the Reddit retail trading crowd ran over Wall Street pros
   NBC NEWS-GameStop? Reddit?        Explaining what's happening in the stock market
   NY TIMES- 4 Things to Know        About The GameStop InsanityWhat Does This Mean For Those Invested in Real Estate?

 
  
  In a nutshell, not a whole lot. Except for peace of mind that their hard-earned money is in the right place. Every investment entails some level of risk; no investment is a 100% guarantee. But what is 100% is that a   band of Reddit Users isn't going to surge or manipulate the Multifamily Real   Estate Market and Picasso your portfolio. 
According to recently published data, Real Estate has been the best performing investment in modern history. There used to be an unfair advantage around Real Estate Investing and the notion that it was the playground for only extraordinarily wealthy and connected. Now, more than ever is the time to get into Real Estate Investing.   More specifically, Multifamily Real Estate Investing.

You may have heard a lot of buzz around the almost forgotten video game retailer, GameStop, the last few days. The big squeeze may have even affected you. If you're not aware of what exactly is going on, we have found a few articles explaining the situation.

• CNBC-GameStop mania        explained: How the Reddit retail trading crowd ran over Wall Street pros
• NBC NEWS-GameStop? Reddit?        Explaining what's happening in the stock market
• NY TIMES- 4 Things to Know        About The GameStop Insanity
• 
• What Does This Mean For Those Invested in Real Estate?
• In a nutshell, not a whole lot. Except for peace of mind that their hard-earned money is in the right place. Every investment entails some level of risk; no investment is a 100% guarantee. But what is 100% is that a   band of Reddit Users isn't going to surge or manipulate the Multifamily Real   Estate Market and Picasso your portfolio.
• According to recently published data, Real Estate has been the best performing investment in modern history. There used to be an unfair advantage around Real Estate Investing and the notion that it was the playground for only extraordinarily wealthy and connected. Now, more than ever is the time to get into Real Estate Investing.   More specifically, Multifamily Real Estate Investing.
• 
•

Investors following whats going on in Wall St?

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