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Real estate stalling out? What does it matter who wins the White House? Inflation killed the housing market. With higher inflation & interest rates, the typical dual earner family can't afford to get into a costlier new mortgage. If they were offered a new job requiring relocation which drives a lot of movement in real estate they can't afford it. Most people today could not sell & buy back their own home. New mortgage payments are double what they are paying today....assuming they locked in a 3% mortgage. If they got a promotion or increase in salary will not make up for the increase in costs of moving into a higher mortgage. Most people work off monthly budgets & payments. This will not get better till mortgage rates come down and interest rates get cut. The Fed is in a precarious situation. They need to raise interest rates to kill inflation & slow the stock market with all the money sloshing around in the system, but they need to lower rates to save the real estate market at the same time. The Fed is calling for 3 .25 cuts, the first one being in September. Remember interest rate cuts do not start affecting business behavior for 12/18 months. The Fed will be behind the curve as October rolls in, which is typically a bad month for the stock markets. Markets affect you even if you don't think so. With elections in November the Feds will go on hold, to not appear political. Depending on how things go from there and election outcomes, the Feds might have to do bigger rate cuts in December & 1st quarter 2025 as we slide into potential recession. The next move by the Fed will be determined by election outcomes and their future policies. A Harris win equals the markets going down. Normally Democrats are not horrible for the stock market but Harris's increase on capital gains and unrealized profits is not good for anyone. Markets will sell off if elected as people lock in 20% long term capital gains on stock appreciation from years past. Smart money will sell by year end, before she takes office. Stagflation like in 70s is our path. All asset prices will continue up for those that own assets. As I wrote in 2008, the middle class will be gutted and the poor will get more poor via inflation and the ones that understand this shell game will be just fine. Remember those who understand interest earn it & those who do not pay it, via financing their life. A Trump victory is not great for the Fed either as he will reduce taxes & fuel jobs which spurs inflation causing it to heat up again. The Fed might need to raise rates again to kill inflation like they did in the 80s. Lower taxes & the same $ sloshing around in the economy from the $ printing during covid equals permanent higher rates and inflation. Only a major recession and debt reduction will fix the issue. Richer or poorer is your decision & if not made now, it will be made for you. Bitcoin ripped up over 5% today and Gold is at an all time high now over $2500 an ounce.

For anyone nearing retirement or not liking what the stock market is doing to your future retirement you owe it to yourselves to seek out information. With interest rates high, but likely to be cut in September some annuities are paying the highest fixed interest rates and highest payout ratios paid in the last 30 years. If your over 50 and your financial professional is talking to you about annuities please reach out for a quick call with me as I can explain all the dirty little secrets they might not tell you but you need to understand before moving 401ks and IRAs or even just cash into any annuity. All annuities are not created equal. I'm licensed in 27 states and can answer any questions you might have on this topic.