Another Day, Another $266

Proprietary Data Insights

Top Stock Searches This Month

0 1 2
Rank Name Searches
“#1” AMC Entertainment “901,298”
“#2” Tesla “830,132”
“#3” Apple “591,766”
“#4” Bed Bath & Beyond “527,931”
“#5” Nvidia “452,458”
“#6” American Virtual Cloud Technologies “437,571”

Jeff Clark Trader

[“Live Demo”] How to trade options in 30 seconds…

I retired at 42 by trading options. My method is different. Unlike anything you’ve probably seen before. For the first time, I put together a 30-second “live demo” to show you how it works.

Click here to learn more.

Housing

Another Day, Another $266

Key Takeaways:

  • If you’ve been trying to enter the housing market lately, you might think the American dream’s dead. 
  • However, you have a decidedly different view of things if you bought ten years ago. 
  • From a housing perspective, the last decade defined the American dream. 

 

Let’s run some numbers to see what made US households more money in the last decade: stocks or real estate. 

Thanks to our friends at Point2Homes for the crazy data on the astronomical growth in home prices over the last ten years: 

Home prices in… (the San Jose) California metro rose more than $1 million, reaching $1,640,000 in 2021 and $1,9 million in Q2 2022. In other words, between January 2011 and December 2021, home prices here increased by an average of $266 per day. Coming in second, San Francisco homes added an average of $208 every day for 10 years, going from a little less than $500,000 in 2011 to a median of $1,320,000 in 2021.

Unbelievable. But what if you don’t live or own a home in the top two housing markets between 2011 and 2021? 

  • Anaheim-Santa Ana-Irvine: $146 per day
  • Los Angeles-Long Beach-Glendale: $123 
  • Seattle-Tacoma-Bellevue: $103 
  • Denver-Aurora-Lakewood: $94 
  • Salt Lake City: $76 
  • Austin-Round Rock: $74 
  • Miami-Fort Lauderdale-West Palm: $74
  • Boston-Cambridge-Newton: $74
  • Eugene, Oregon: $59
  • Ann Arbor: $47
  • New York-Newark-Jersey City: $45
  • Buffalo-Cheektowaga-Niagara Falls: $23
  • Erie, PA: $9
  • Peoria, IL: $3

Insane in the membrane. Insane in the brain. 

More proof we live in a world of haves and have nots. 

You’re “making” in excess of $200 a day on real estate in tech-heavy Northern California, but just a few dollars a day in Illinois cities, such as Peoria and Decatur. But even in those places, home prices appreciated 8.9% and 28.7%, respectively. Nice, but nothing compared to the 187.7% and 173.1% pops in the San Jose and San Francisco metros. 

How Much Did The S&P 500 Deliver Per Day?

Let’s do some rough math. 

If you put $10,000 into the S&P 500 (SPY) at the beginning of 2011, you would have had $37,774 at the end of 2021. Good for a 278% increase. 

Break it down per day (365 days per year X 10 years) and that $27,774 you “made” generated $7.61 per day. Of course, this doesn’t count additional contributions or dividend reinvestment. 

It also doesn’t take into account the roughly 22% decrease in SPY year-to-date. For the record, home prices in the San Jose market increased 15.9% between the end of 2021 and Q2, 2022. 

Did You Really Make Any Money? 

There’s a difference between making money and making money

If you don’t sell, it’s all on paper. If you sell a house you live in, you must secure subsequent shelter. This costs money. 

And who knows the state of your mortgage. Did you tap that equity? And so on. 

Similar story on stocks. If you planned on retiring this year, the S&P’s decline might have thrown a wrench in your plans. However, if you cashed out at the end of 2021, you ended up in a relatively strong position. 

 

[instory_ad_1]

The Bottom Line: No matter how you slice it, the period between 2011 and 2021 might go down as the golden age of the American dream. Lots of people made lots of money in real estate and the stock market. 

What a difference nine months can make. 

A baby can pop out. Mortgage rates can go from 3% to 7%. Home prices can actually go down in California! Stocks can flirt with bear market territory. The economy looks like it might enter a recession. 

At The Juice we believe there’s always opportunity. And we’ll be here with strategies to help you live your best money life money no matter the times – good, bad, or otherwise.

Want to get content like this directly to your inbox?
Then we urge you to sign up for our newsletter here

Related posts

Carl Icahn Increases His Stake In Take-Two Interactive To 10.68%

ValueWalk

iPad Mini Display Outperformed By Kindle Fire HD & Nexus 7

ValueWalk

Foxconn Might Open Manufacturing Plants In The U.S. [REPORT]

ValueWalk

Peter Cundill Protégé Tim McElvaine on Investing in Japan [VIDEO]

ValueWalk

Set Bing Home Page Image As Lock Screen In Windows 8

ValueWalk

Morning Market News: JCP, APO, MCHP, ZIP, ENR, LGF, EA, ATVI, COV, LNT

ValueWalk