Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com) The S&P 500 continues to reach new highs on a weekly basis. But a major top could be forming right now. One of the most reliable indicators to anticipate market tops and bottoms has been the bullish percent index. The BPI is a breath indicator that uses a point & figure chart to determine when markets are overvalued or undervalued. The green line in this chart below shows the BPI. One way to read it is when the BPI line drops below 70, it is likely the stock market will sell off. And when the BPI moves up and crosses above ..read more

Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com) The S&P 500 hit a record high this week of 4850 points. And it may continue moving even higher. ? But this doesn’t mean the overall stock market is doing well. In fact the Russell 2000, which is a more inclusive index of US stocks, is still down about 15% from its all time high back in late 2021. This is because the technology sector has significantly outperformed lately. Since the S&P 500 is overly exposed to tech stocks, it has done extremely well compared to the rest of the market. Here’s a graph of the S&P 500 perfo ..read more

Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com) Welcoming 1.2 million new people this year Happy holidays, everyone. ? With a new year comes new challenges and opportunities. But one thing that won’t change much in 2024 is the rate of immigration, lol. The government recently decided to plateau its long-term immigration targets, gradually increasing the amount of new permanent residents from 465,000 in 2023 to 500,000 by 2025, where it will remain for 2026. But this only accounts for PR approvals. Non-permanent immigrants such as international students and temporary foreign work ..read more

Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com) Small stocks, big value The stock market has been on a tear lately. The S&P 500 now has a forward P/E ratio of 18.7 which is more expensive than its historical average. As investors we want to buy assets when they are cheap. Luckily stocks can be grouped by size. The S&P 500 are large cap companies. But when we look at small cap stocks, they are trading at only 12.9 times forward earnings. In fact, small-caps are at their cheapest level in over a year. ? This doesn’t necessarily mean small cap stock prices will rise soon. B ..read more

Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com) US stocks are down year to date  You probably wouldn’t have guessed it, but stocks are down 4% in 2023 so far. This is according to the S&P 500 equal weight index. However the more commonly quoted S&P 500 index is up 10% year to date. Why the big difference? It’s because only a handful of the 500 companies that make up the index is responsible for all of its gains. As of earlier this month, here are the 2023 returns of the top 7 largest components of the S&P 500, called the magnificent 7. What this means is that t ..read more

Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com) Will Burry be correct this time as well? Fund manager Michael Burry is famous for predicting the great financial crisis and shorting real estate before the market crashed in 2008. Well he recently became bearish again on the financial market. From the latest 13F filings Burry disclosed he has bought about $1.6 billion worth of put options for the S&P 500 and the Nasdaq 100. This essentially means he will make money if the stock market drops. The S&P 500 or the SPY etf has entered a new bull market, but maybe Burry sees some ..read more

Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com) The future of Vancouver real estate A 1 bedroom condo in downtown Vancouver recently sold for $1 million. (#404 889 Pacific St.) Someone looked at this 4th floor unit and said, “Yes, let me go ahead and pay $1,600 per sqft to buy this.”   Higher up in the same building a 3 bedroom unit sold last month for $2.35 million. (#3501 889 Pacific St.) You might think there aren’t that many people with $2.35 million of purchasing power. But this property sold in just 6 days. The competition to buy these multi-million dollar homes is s ..read more

Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com) Which is better? Fixed rate mortgages have their time and place, but is now a good time to lock in a rate going into a potential recession? The Bank of Canada raised interest rates to 5% last week. I think that will be the last increase we see this year. ? In this video I discuss which type of mortgage I would get today and an economic prediction for the next 6 to 9 months.     Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com ..read more

Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com) What the earnings yield can tell investors about stocks The price to earnings ratio is a useful measure to determine if a stock is cheap or expensive. The P/E ratio compares the price of the stock relative to the company’s profitability. So generally a lower P/E ratio represents a better bargain. This valuation metric works across sectors and even entire indices as well. By inverting the P/E ratio we get the earnings yield. This is the 1 year investment return you can expect to make by investing in the market today, assuming earnin ..read more

Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com) Tying the knot can have many practical financial benefits. Married couples often have dual incomes. They get tax breaks, enjoy economies of scale, can rely on each other during adverse life events, and generally have a longer life span than unmarried folks. But is it possible to put a dollar amount on the benefits of marriage? Well, some economists have tried. ? David Blanchflower and Andrew Oswald calculated the “compensation value” of long term commitment in terms of happiness. They concluded that a happy marriage is worth an imp ..read more