Where to Invest in – Real Estate, Stocks, Gold or Cash?
Ready to find the best stocks to buy in 2019? US stock markets have had a fantastic run the last 6 years, with the DJ hitting 20,000. The booming US economy has lots of demand and consumer buying power to tap into. But which companies will profit best?
We know the past, but how are we on forecasting the future? Expert stock analysts have had significant challenges trying to predict how the Dow, NASDAQ and S&P would respond and adjust to the America First agenda pushed by Donald Trump.
They’re using old economic models and basing outlooks on outdated cyclical market data. Some politicians, Fed chairman and others want the current bull market to end, so it fits with their conception of how things should be.
Multinational corporations are in trouble and some may not survive. The demise of some might be shocking. Rather than a crash, we might see specific stock prices fail. Amazon, Google and Facebook are likely not going to be among them.
How To Invest in the Stock Market
Here’s a few websites to review, before you decide on hiring a stock broker or use an online service such as Vectorvest.
Let’s take a quick look at real estate investment opportunities which might produce exception returns in 2019 compared to the stock market of 2018.
US Stock Market Forecast 2017
“For 2017, J.P. Morgan anticipates geopolitical risk stemming from Europe and the Middle East as well as questions surrounding the new policies from Donald Trump’s presidency will permeate markets. Still, the firm also estimated in the report that the S&P 500 Index will surge 8% to 2,400 by the end of 2017. A stronger U.S. dollar and higher rates pose risks for stocks in 2017, as these factors can affect price-to-earnings ratios, emerging markets, the housing market, and U.S. equity groups such as multinational, domestic manufacturing, and bond proxy companies, according to JPMorgan. – from a report on the WSJ.com.
Where are the Best Opportunities and Cities to Invest in Real Estate in 2019?
If you read my post on the best US cities for real estate investing, you know that some cities offer a 30% return right off the bat. Choosing the right city is a big part of the profit equation especially if you’re modest investor. The other parts are which specific types of properties to pursue, whether there’s plenty of millennial buyers in the area, and which types of upgrades bring the best return.
Home flippers will want to choose single detached homes especially where there is an income apartment built in to the property. Is San Francisco or New York or Los Angeles or Waco a good bet for a solid flip? Ask Chip and Joanna as I’m sure they know that market well enough. For other markets, there are sources so don’t shy away from a little research.
Pick all the right property buying variables intelligently, and you raise the likelihood of making a lot of money on your investment. Take a good look at rental income properties in Los Angeles, Atlanta, Philadelphia, Tampa, San Jose, Bay area and San Francisco simply due to the persistent high apartment rentals prices. It doesn’t look like there is a solution for that overheated market. With no new construction, current rents can only go higher.
Is Stock Market Investment a Good Choice?
Take a look at how the Dow Jones has fared since January of 2015. If it wasn’t for the recent Trump bump up, the market barely progressed. And the stock markets were all aglow about record prices. Well, they also said Trump would ruin them. After a lot of turbulence, it looks like investors believe Trump will be good for all the big corporations and perhaps economic growth in the US.
The stock markets are at all time highs with nowhere to go. The percentage gain on current prices will not be good. If the US economy resurgers, will property investment outperform gains in stock prices? Check out the hottest upcoming cites and what you could do with that property and now you have incredible potential for profit. And could all those people on HGTV be wrong?
The Trump rally will continue into the early part of 2017, then drop off as the Fed hikes interest rates rise more than the market expects and sentiment shifts, Goldman Sachs predicts in its forecast for the coming year — Goldman Sachs
Has any small investor ever gotten rich off of dividends?
Is the tale of the stock market curve is really all you need to know about investing? Are there some growth stocks to pursue?
Another important benefit of investing in real property, especially for house flippers, is that you’re more personally and emotionally engaged in the process and outcome. Stock market investing is passive and you can do nothing to help the performance and ROI. With real property, you are able to find ways to help yourself succeed. Whether it’s flipping or living in an income rental property, you can effect the performance of that investment. Let’s hope you make the right decisions and hire the right people!
Further resources on stocks vs real estate: