URGENT: Trump Wins, Federal Reserve Cuts Rates, Stocks Hit All-Time High!

"the S&P 500 has doubled within that time frame but as you're about to see those sort of returns aren't exactly normal like take a look at this since 1924 the S&P 500 has increased overall by just 65% a year or with dividends reinvested by 10% a year which is even lower when you account for inflation"

"there might be a scenario in which the next 10 years sees significantly lower returns than many of us have become accustomed to how low you might ask well as Goldman Sachs points out over the last few years the vast majority of stock market profits are driven by what's called The Magnificent 7 which consists of Apple Amazon alphabet meta Microsoft Nvidia and Tesla so is this sustainable and according to Goldman Sachs it's not the way they see it valuations are some of the highest they've ever been when you compare that to earnings and as a result historically that tends to mean that the stock market return returns over the following 10 years are suboptimal or I guess as they say their model predicts annual returns ranging from plus 7% to NE 1% with a 72% probability that stocks will underperform bonds over the next decade for Goldman Sachs this translates to just a 3% annualized return over the next 10 years"

"Vanguard lowered their next 10year projection to just 32% a year"

"all of this suggests that we're probably going to see one more rate cut throughout the end of the year most likely to the tune of 25 basis points"

"if this continues we're most likely going to see a series of rate Cuts throughout 2025 as a way to spark up the economy"

"historically the highest compound annual growth returns came from a Republican president at 10.2% but a Democrat president isn't too far behind at 99.4% to take that a step further when you begin looking at median returns you'll begin to notice that Republican presidents have frequently been plagued by rather substantial stock market losses as well and all of this means that average annual returns tend to be higher with Democrats at 12.9% versus Republicans at 99.9%"

"existing home sales are on track for their worst year since 1995 for the second year in a row"

"Zillow believes that home sales are only on Pace to climb 2% in 2024 and 0.9% over the next 12 months"

"rent growth is also slowing down quite a bit with rents only increasing $1 over the last month"

"the recent jobs report found that only 12,000 jobs were added in the month of September and even though unemployment is still incredibly low all things considered it's still something it's going to take a lot more observation over the coming few months especially since employment is on a downtrend"

"over the last few years the vast majority of stock market profits are driven by what's called The Magnificent 7 which consists of Apple Amazon alphabet meta Microsoft Nvidia and Tesla so is this sustainable and according to Goldman Sachs it's not the way they see it valuations are some of the highest they've ever been when you compare that to earnings and as a result historically that tends to mean that the stock market return returns over the following 10 years are suboptimal or I guess as they say their model predicts annual returns ranging from plus 7% to NE 1% with a 72% probability that stocks will underperform bonds over the next decade for Goldman Sachs this translates to just a 3% annualized return over the next 10 years"

"another culprit could also simply be that mortgages are expensive housing is largely unaffordable and some sellers out there are asking way more money than their home is ever realistically worth on top of that I'm also personally not a big fan of waiting on politically sponsored plans that may or may not ever happen happen but the trend is apparently clear we are slowly heading towards a neutral housing market as more inventory continues to be listed and fewer homes are being sold over list price rent growth is also slowing down quite a bit with rents only increasing $1 over the last month"

"all of this suggests that we're probably going to see one more rate cut throughout the end of the year most likely to the tune of 25 basis points"

"if this continues we're most likely going to see a series of rate Cuts throughout 2025 as a way to spark up the economy"

"historically the highest compound annual growth returns came from a Republican president at 10.2% but a Democrat president isn't too far behind at 99.4% to take that a step further when you begin looking at median returns you'll begin to notice that Republican presidents have frequently been plagued by rather substantial stock market losses as well and all of this means that average annual returns tend to be higher with Democrats at 12.9% versus Republicans at 99.9%"