🛑 Buffett's indicator goes red

Together with Golf Suites 

Good morning investors! The market will be closed tomorrow, so prepare for an exciting day today.

Fun fact: Unemployment Rate in the US averaged 5.71 percent from 1948 until 2023, reaching an all time high of 14.70 percent in April of 2020 and a record low of 2.50 percent in May of 1953.

Today we cover:

• Buffett’s market indicator is now red

• Stocks are up

• Coinbase takes a beating

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📊 Economy and News 

Warren Buffett’s favorite market indicator says it’s time to sell

Warren Buffett's preferred metric for assessing stock value is suggesting that stocks are overvalued and could potentially experience a significant decline.

The Buffett Indicator, a key measure he often references, has reached 171%, driven by investor optimism regarding artificial intelligence (AI), interest rate reductions, and the prospect of a gentle economic slowdown.

The measure proved its worth last year, when it plummeted from over 210% in January to below 150% by September. However, it isn’t flawless or 100% correct. Yet, Buffett has frequently praised this indicator as "perhaps the best single measure" of stock valuation.

Global hits:

• Japan’s yen hits 34-year-low, heating talk of intervention.

• Yellen warns China’s surplus of solar panels, EVs could be dumped on global markets.

• A years long fight between Disney and Florida is set to end after the two parties agreed to a settlement.

📈 Stocks

S&P 500 5,248.49 (+0.86%)
DJIA 39,760.08 (+1.22%)
NASDAQ 18,280.84 (+0.39%)
BRENT CRUDE 86.63 (-0.65%)
* Prices as of Mar 28th, 12:20 AM UTC

Stocks are still growing

The S&P 500 rose yesterday, reaching another new high making it the index’s best first quarter since 2019.

All 11 sectors of the S&P 500 registered gains yesterday. Utilities led the index higher, posting a nearly 2.8% gain. Real estate followed with a 2.4% advance, and industrials added 1.6%.

The major averages are also poised to end the first quarter of 2024 on a strong note. The S&P 500 is tracking for a 10% advance to end the period, pacing for its best first-quarter gain since 2019 when it added 13.1%.

The 30-stock Dow is up about 5.5%, and on pace for its best first-quarter gain since 2021, when it added 7.4%.

Bit of medicine: Moderna is running at a fast pace and has moved three vaccines into final stage trials as it works to rebound from the Covid slump. The company badly needs new hit products now that Covid vaccines are not in demand anymore. The company will talk more about future plans at the fifth annual “Vaccines Day” event.

Also, studies suggest that the diabetes drug Ozempic could be manufactured for less than $5 a month, which comes as a surprise as Novo Nordisk charges about $1,000 per it before insurance in the US. The study raises important questions regarding profit margins.

Lastly, Altimmune said its experimental drug in a midstage trial helped patients shed weight but also minimized the loss of muscle mass. 

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🔐 Crypto

Bitcoin $69,502 (-0.01%)
Ethereum $3,504 (-0.02%)
Total market cap $2.6T (-0.87%)
* Prices as of Mar 28th, 12:20 AM UTC

SEC vs Coinbase heats up

The Securities and Exchange Commission scored a major win in its lawsuit against Coinbase as a judge ruled that its claim that the cryptocurrency exchange engaged in unregistered sales of securities could be heard by a jury at trial.

The news caused Coinbase shares to fall -2.5% during the day.

The regulator first filed suit against Coinbase in June, alleging the company was acting as an unregistered broker and exchange. The agency also demanded the company be “permanently restrained and enjoined” from continuing to do so.

“We were prepared for this, and we look forward to uncovering more about the SEC’s internal views and discussions on crypto regulation,” said Coinbase.

💵 Personal Finance

Real estate for retirement 🏠

I have a neighbor who bought 2 four-plexes as part of his retirement plan. In fact, that is his retirement plan. It’s going well for him, but he spends every Saturday taking care of the properties.

Could it be right for you?
Investing in multi-family real estate can be a great way to build wealth over time. Here are some of the benefits of investing in multi-family real estate:

• Passive income: Multi-family properties can generate a steady stream of income from rent payments. This can be a great way to generate passive income, which means you don't have to actively work to earn it. The average rent for an apartment in the U.S. is $1,702. The cost of rent varies depending on several factors, including location, size, and quality. If you play it right, you can easily make a decent amount of money if you have a few solid properties. This rule applies to other countries as well. In most cases, expect to make about 1% of the property’s value no matter where you are. It can go up in some countries but is rarely below the 1% threshold. Knowing how to determine the rental value of your property can be a great way to know how much you'd make if you invest in a property.

• Capital appreciation: The value of multi-family properties can appreciate over time, which can provide you with additional profits when you sell the property. According to the CaseLogic report, in January 2022, the nationwide annual appreciation for detached properties was 20.3 percent. For attached properties it was slightly lower: 15.2 percent. This is a very good number but it greatly varies. Some states reported as low as 4% and some as high as 25%.

• Tax benefits: There are a number of tax benefits available to real estate investors, including depreciation deductions and tax breaks for energy-efficient upgrades. Explore these to enjoy all the perks of being a real estate investor.

• Diversification: Investing in real estate can help to diversify your investment portfolio, which can reduce your overall risk.

• Economies of scale: When you own multiple units, you can benefit from economies of scale. This means that you can spread out the costs of things like property management, maintenance, and repairs over a larger number of units, which can save you money.

Of course, there are also some risks associated with investing in multi-family real estate, besides spending a lot of time and expenses on upkeep. These include:

• Tenant risk: If your tenants don't pay their rent, you may have difficulty collecting it. This can put a strain on your cash flow and make it difficult to make your mortgage payments. Also, remember that the US Rental Vacancy Rate is at 6.30%, which means that it can often be hard to find a tenant.

• Property damage: Tenants may damage your property, which can be costly to repair. Insurance can help cover this to an extent.

• Market risk: The value of your property may decline if the market takes a downturn. This could make it difficult to sell the property or refinance your mortgage. To be safe, perform research and consider working with an agent.

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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Disclosure: This is a paid advertisement for GolfSuites 1 Inc Regulation A Offering. Please read the offering circular at invest.golfsuites.com