Where To Put Your Money With A Bullish New Economy On The Horizon
Markets appear to be rising, and the outlook for the economy in the new year is looking brighter than it has in years. So, where’s the best place to put your money now?
A new round of economic optimism has erupted in the wake of the November presidential election. Bloomberg News reports that crypto traders are once again shopping for Lamborghinis and Aston Martins as bitcoin soars. Citigroup’s CEO Fraser says their clients are ramping up their plans, and it’s “game on” for deals in the US again.
The Economic Theme For 2025: Confidence
After years of end of year forecasts repeating that uncertainty is the overhanging theme ahead, going into 2025, the main trend may now be confidence instead.
Confidence in itself can force an upward spiral. Lower interest rates, more capital flowing, and more credit could all certainly help fuel more economic growth and business success across the board.
Of course, some asset classes, like gold may already seem to have peaked in this cycle. So, where is the best place to put your money now?
No matter the personal and political preferences, one thing just about everyone should be able to agree on is that Trump is a real estate president. It seems almost certain that he will be likely to direct policy in favor of real estate assets. Which may even include bringing back or increasing tax breaks for real estate investors, and perhaps in the wake of his own recent personal and business drama, enhancing legal protections for real estate investors.
Wrestling With The Realities
Obviously optimism alone can only go so far. There has to be underlying fundamentals to prop up growth.
This could certainly come in the year ahead. Yet, it would be irresponsible to ignore some of the recent and current facts. Such as inflation. Prices on everything are still high. A new bull run in the economy may only push up prices further. Even if that is offset by higher wages and earnings.
In some parts of the country homeowners, funds, and other real estate owners have found themselves struggling over the past six months. For many it will be too late. Many may be too far in the hole to avoid the inevitable. Or at least the need to sell their assets at discounts.
Of course, this presents incredible opportunities for those with capital, who can take advantage of a new lift in markets, and more capital, and less expensive financial leverage.
Stepping Into The New Year
Investing boldly into 2025 is a must. It’s not just an opportunity to make up for several years of softer returns, but an essential time to position to keep up with a growing economy.
Expenses and overhead can only be cut so far, the rest relies on increasing your income and multiplying your wealth. At least enough to keep up with inflation. Just perhaps, this next lift in the economy will take your finances even further than you hoped.
Now is the time, that together, investors can work to breathe new life into failed projects of others, enjoy fresh growth in existing assets, and enjoy rising incomes as the economy picks up, and rental rates are supported by stronger jobs and wages.
