Latest / Earn Your Leisure / Insights on the Housing Market, Stock Market, and Top Investment Strategies

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Insights on the Housing Market, Stock Market, and Top Investment Strategies · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J.
• 0:20
  Speaker 2: Trump's leadership.
• 0:21
  Speaker 1: I'm Christy nom the United States Secretary of Homeland Security.
• 0:25
  Speaker 1: Under President Trump, attempted illegal border crossings are at the
• 0:29
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 0:33
  Speaker 1: aliens have been arrested. If you are here illegally, your
• 0:37
  Speaker 1: next you will be fined nearly one thousand dollars a day, imprisoned,
• 0:41
  Speaker 1: and deported.
• 0:42
  Speaker 2: You will never return.
• 0:44
  Speaker 1: But if you register using our CBP home app and
• 0:47
  Speaker 1: leave now, you could be allowed to return legally.
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  Speaker 2: Do what's right. Leave now.
• 0:53
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 0:57
  Speaker 3: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 4: Recently, for the first time in a couple of years,
• 1:02
  Speaker 4: Mahattan rents have fell. Also, I saw a Wall Street
• 1:06
  Speaker 4: Journal posted a report. A few people will posted report.
• 1:09
  Speaker 4: We even post about this, but yesterday they posted a
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  Speaker 4: report saying that it no longer makes sense to buy
• 1:14
  Speaker 4: a home as far as you know, the price for
• 1:17
  Speaker 4: a mortgage relative to the average rents. They you know,
• 1:20
  Speaker 4: saying like that it is actually not in the best
• 1:24
  Speaker 4: interest of most people to actually buy a home. So
• 1:28
  Speaker 4: and then you know, we talk about hedge funds buying
• 1:29
  Speaker 4: a lot of single family home stuff like that. So
• 1:32
  Speaker 4: where do you think we're at in the housing market
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  Speaker 4: right now? And how do you how do you see
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  Speaker 4: that plan out?
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  Speaker 5: Yeah, we know, home affordability is that it's weakest, lowest
• 1:42
  Speaker 5: point ever right relative to people's wages, what mortgage rates are,
• 1:46
  Speaker 5: and the average price of a home, so mortgage, so
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  Speaker 5: home affordability is pretty much out the window for a
• 1:51
  Speaker 5: lot of people. That said, buying a home is a
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  Speaker 5: huge emotional decision, but it's also the biggest asset most
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  Speaker 5: people are going to ever purchase in their line lifetime.
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  Speaker 5: It is also in a lot of cases the foundation
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  Speaker 5: for building generational wealth. Why you buy a home you
• 2:06
  Speaker 5: potentially handed down to your children, who handed down to
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  Speaker 5: their children, becomes the family home. So I always think
• 2:12
  Speaker 5: it's going to have that special place in our hearts.
• 2:14
  Speaker 5: The fact that it's not affordable these days is kind
• 2:17
  Speaker 5: of heartbreaking if you think about it. So, either we're
• 2:19
  Speaker 5: going to have to have a lot of construction of
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  Speaker 5: new homes, which means there's going to have to be demand,
• 2:24
  Speaker 5: which means mortgage rates are going to probably come down,
• 2:27
  Speaker 5: which we know that are already coming down. So we're
• 2:29
  Speaker 5: going to have a boom in building of single family
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  Speaker 5: homes to meet the demand for the new home buyer
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  Speaker 5: that really wants a piece of that so called American dream.
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  Speaker 5: I think the spring in the summer is going to
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  Speaker 5: be a reawakening for the housing market, as mortgage rates
• 2:44
  Speaker 5: have already come down below seven percent. When they crack
• 2:46
  Speaker 5: that seven percent number, guys.
• 2:48
  Speaker 3: Activity heats up right away.
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  Speaker 5: Mortgage refinancings, mortgage applications, all that comes back right away
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  Speaker 5: because people are so hungry to buy, whether that is
• 2:57
  Speaker 5: individuals who are trying to buy their first home, people
• 3:00
  Speaker 5: trying to buy their second home. And remember people that
• 3:03
  Speaker 5: own their homes. Fifty percent of people that own homes
• 3:05
  Speaker 5: in America today have a mortgage rate below five percent,
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  Speaker 5: so they have been disincentivized to sell right They're not
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  Speaker 5: going anywhere because they're not going to go out and
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  Speaker 5: get a house at seven percent or eight percent, so
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  Speaker 5: they're stuck. They can't sell. Buyers that want to buy
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  Speaker 5: can't buy. This is all going to crack and thaw
• 3:20
  Speaker 5: come the end of the first quarter, beginning in the
• 3:22
  Speaker 5: second quarter, going into the spring season. I think we're
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  Speaker 5: finally going to have a revival of the housing market,
• 3:27
  Speaker 5: which is great for housing stocks and great for the
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  Speaker 5: stocks around housing. Right to furnish your home, to add
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  Speaker 5: the sun room onto your home, to add a new roof,
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  Speaker 5: for whatever you need to do. I think you're going
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  Speaker 5: to have a reawakening of that, and I think that's
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  Speaker 5: going to be good news for the economy, also good
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  Speaker 5: news for people that are trying to get into their
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  Speaker 5: first home.
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  Speaker 6: It's crazy that you just said that, and that that
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  Speaker 6: was in the WORL Street Journal yesterday. Buyers are ready
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  Speaker 6: to buy, but the sellers are not selling right because
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  Speaker 6: we are. You have a large population of people that
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  Speaker 6: have interest rates that are pretty low, and they're like,
• 3:59
  Speaker 6: all right, we're just going to sit here and wait.
• 4:01
  Speaker 6: One of the other percentages and a piece I was
• 4:03
  Speaker 6: reading was the amount of Americans that own stock. I
• 4:06
  Speaker 6: think the number is at sixty percent which is really encouraging. Right,
• 4:10
  Speaker 6: when we had a year like twenty twenty two, I'm
• 4:13
  Speaker 6: assuming and you can correct me if I'm wrong. Is
• 4:15
  Speaker 6: the amount of traffic that you're seeing declining as the
• 4:18
  Speaker 6: stock market goes down? And now in a year like
• 4:20
  Speaker 6: twenty twenty three, when we see the NASTAC is up,
• 4:22
  Speaker 6: the S and P is up that was obviously up,
• 4:25
  Speaker 6: we start to see that traffic increase.
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  Speaker 3: How does that EBB and flow work for a company
• 4:29
  Speaker 3: like you?
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  Speaker 5: Yeah? No? And what we get a lot more traffic
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  Speaker 5: when the stock market is hot? Right? We need volatility
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  Speaker 5: and we need a lot of action in the stock market.
• 4:37
  Speaker 5: It's natural people would come to Investipedia during a time
• 4:40
  Speaker 5: where they're making decisions.
• 4:43
  Speaker 6: Earners, what's up? You ever walk into a small business
• 4:45
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• 6:33
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 6:37
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 6:41
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 6:45
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 6:49
  Speaker 1: some of the heinous migrant criminals caught because of President
• 6:53
  Speaker 1: Donald J.
• 6:53
  Speaker 2: Trump's leadership. I'm Christy nom the.
• 6:56
  Speaker 1: United States Secretary of Homeland Security. Under President Trump, attempted
• 7:00
  Speaker 1: illegal border crossings are at the lowest levels ever recorded,
• 7:04
  Speaker 1: and over one hundred thousand illegal aliens have been arrested.
• 7:08
  Speaker 2: If you were here.
• 7:09
  Speaker 1: Illegally, your next you will be fine nearly one thousand
• 7:13
  Speaker 1: dollars a day, imprisoned and.
• 7:15
  Speaker 2: Deported, you will never return.
• 7:17
  Speaker 1: But if you register using our CBP home app and
• 7:20
  Speaker 1: leave now, you could be allowed to return legally.
• 7:23
  Speaker 2: Do what's right. Leave now.
• 7:26
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 7:31
  Speaker 3: Sponsored by the United States Department of Homeland Security.
• 7:33
  Speaker 5: Things about what to invest in should they invest how
• 7:35
  Speaker 5: to invest. The flip side of that is it's not
• 7:38
  Speaker 5: just stocked and equity related information on Investipedia. So in
• 7:42
  Speaker 5: twenty twenty two, when we were in that dire bear market,
• 7:45
  Speaker 5: things were spinning out of control, the flip side of
• 7:47
  Speaker 5: those of those higher interest rates was that there was
• 7:50
  Speaker 5: finally money in the bank.
• 7:51
  Speaker 3: Right.
• 7:51
  Speaker 5: You get five percent in the CD, five percent in
• 7:54
  Speaker 5: the money market, five percent in the high oled savings account.
• 7:56
  Speaker 5: So when traffic goes down and investing, it goes up
• 7:58
  Speaker 5: and saving for us, and it goes up in things
• 8:01
  Speaker 5: like insurance. So we have kind of a balance. Think
• 8:03
  Speaker 5: about it like a basketball team. The second unit comes
• 8:06
  Speaker 5: in and they're better on defense and maybe working the
• 8:08
  Speaker 5: ball up court. That's how it works here at Investipedia.
• 8:11
  Speaker 5: But we prefer a bull market one hundred percent of
• 8:14
  Speaker 5: the time because that's where a lot of the activity is.
• 8:17
  Speaker 5: So this year has been good, but it's kind of
• 8:19
  Speaker 5: been a slow grind higher, right, It hasn't been this
• 8:22
  Speaker 5: boom off to the races. Now the last few months
• 8:24
  Speaker 5: have been more aggressive as the FED is indicated it's
• 8:27
  Speaker 5: done raising rates, and now since last week when the
• 8:29
  Speaker 5: Fed said they'll probably be three rate cuts next year,
• 8:32
  Speaker 5: traffic's been on fire because the stock market and the
• 8:35
  Speaker 5: crypto markets are really hot right now. But we always
• 8:37
  Speaker 5: have some balance one way or the other. We just
• 8:39
  Speaker 5: prefer a nice hot bull market.
• 8:43
  Speaker 7: What advice do you give to a person who may
• 8:45
  Speaker 7: have missed out on the bull run of this year?
• 8:48
  Speaker 7: And I also want to get your take on like
• 8:51
  Speaker 7: all the information is there on Investipedia, all the definitions, insights, strategies.
• 8:57
  Speaker 7: Why do you think people have such a hard time
• 8:59
  Speaker 7: sticking with the planning through and through even though it's
• 9:01
  Speaker 7: proven to work over the course of time.
• 9:04
  Speaker 5: Right here, Ian, this is our problem right between our ears.
• 9:08
  Speaker 5: It's our animal spirits that tell us to run when
• 9:11
  Speaker 5: we should stay, tell us to stay when we should run. Right,
• 9:14
  Speaker 5: We let our emotions take over instead of having a plan. Now,
• 9:16
  Speaker 5: what I love about what you do through red pat
• 9:19
  Speaker 5: and everything else that you do is you actually have
• 9:21
  Speaker 5: a plan and you have a strategy. If you veer
• 9:23
  Speaker 5: from the strategy, you do it for a very specific
• 9:25
  Speaker 5: reason and you make a note of it. Right, there
• 9:28
  Speaker 5: is a plan. If we're breaking the plan, we better
• 9:30
  Speaker 5: know why. We better make sure we know why we
• 9:32
  Speaker 5: did it. People don't go with an investment plan, they
• 9:35
  Speaker 5: go with an emotion, or they hurt something on market mondays,
• 9:38
  Speaker 5: or they heard you say something in another interview and
• 9:40
  Speaker 5: that's why they're going to do that. And then it
• 9:42
  Speaker 5: doesn't work out, and it's like going to the casino
• 9:44
  Speaker 5: for the first time and you flush sixty dollars away
• 9:46
  Speaker 5: and you leave because you had a terrible time.
• 9:49
  Speaker 3: This is not a casino.
• 9:50
  Speaker 5: This is a long term marathon, right, So having a
• 9:53
  Speaker 5: plan and sticking with the plan is super hard. It's
• 9:56
  Speaker 5: okay to veer from it as long as you understand why.
• 9:58
  Speaker 5: So I think that's it that missed the bull market
• 10:01
  Speaker 5: of twenty twenty three, or the recovery from October of
• 10:05
  Speaker 5: really of twenty twenty two to now. Guess what, And
• 10:07
  Speaker 5: we were talking about this earlier this year. There's always
• 10:09
  Speaker 5: a bull market somewhere, right If you missed, you know,
• 10:13
  Speaker 5: the big run up in AI stocks, if you missed
• 10:15
  Speaker 5: the Nasdaq one hundred and fifty odd percent run so
• 10:18
  Speaker 5: far this year, guess what small caps are popping right now?
• 10:21
  Speaker 5: There's a bull market happening right there. If it's not
• 10:24
  Speaker 5: small caps, it's going to be another part of the
• 10:25
  Speaker 5: market that's going to move. So it's about sector rotation,
• 10:30
  Speaker 5: like knowing which way the wind is blowing, so you
• 10:32
  Speaker 5: can say I think it might be time for this
• 10:34
  Speaker 5: sector to activate, or just saying, look, I'm comfortable being
• 10:37
  Speaker 5: an index investor as long as I contribute regularly. I
• 10:40
  Speaker 5: know I'm good for eight to ten percent a year
• 10:42
  Speaker 5: on average, and that should be good enough for me
• 10:45
  Speaker 5: as long as I'm consistent with my investing plan. I'm
• 10:47
  Speaker 5: the editor in chief of Investipedia. I have exposure to
• 10:51
  Speaker 5: the most high end professional investing research there is, but
• 10:55
  Speaker 5: I don't go out and speculate and buy individual stocks.
• 10:58
  Speaker 5: I'm a boring index in s're in an ETF investor
• 11:01
  Speaker 5: because I'm not smart enough to outsmart the market. I'm
• 11:03
  Speaker 5: smart enough to keep consistent with my plan and keep
• 11:07
  Speaker 5: adding every month to it, every single month, like clockwork,
• 11:11
  Speaker 5: until I'm not investing, and that's not for a good
• 11:13
  Speaker 5: twenty five thirty years.
• 11:15
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 11:18
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 11:22
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 11:27
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 11:31
  Speaker 1: some of the heinous migrant criminals caught because of President
• 11:34
  Speaker 1: Donald J.
• 11:35
  Speaker 2: Trump's leadership.
• 11:36
  Speaker 1: I'm Christy Noman, the United States Secretary of Homeland Security.
• 11:40
  Speaker 1: Under President Trump, attempted illegal border crossings are at the
• 11:44
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 11:48
  Speaker 1: aliens have been arrested. If you are here illegally, your
• 11:52
  Speaker 1: next you will be fine nearly one thousand dollars a day, imprisoned,
• 11:56
  Speaker 1: and deported.
• 11:57
  Speaker 2: You will never return.
• 11:59
  Speaker 1: But if you read rechter using our CBP home app
• 12:02
  Speaker 1: and leave now, you could be allowed to return legally.
• 12:05
  Speaker 2: Do what's right. Leave now.
• 12:08
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 12:13
  Speaker 3: Sponsored by the United States Department of Homeland Security.