A Real Estate Slowdown and a Pricey Stock Market

June 7, 2024

In the June investment edition of the Wealthy Behavior podcast, I spoke to our Chief Investment Officer, Bob Weisse, about:

  • May being a good month for stocks despite processing a higher for longer message from the Fed
  • Expecting the Russell 3000 to outperform the S&P 500 given its small and mid cap exposure
  • U.S. bonds doing well in May as rates came down, despite a negative year overall for the bond market
  • U.S. stock market valuations increasing to 27 times trailing P/E and why we think that, plus more attractive bond yields and cheaper international stocks call for more portfolio diversification
  • The difference between trailing and forward P/E and why to be careful with overly optimistic forward P/E
  • Momentum investing and why investing in stocks that split makes sense
  • Residential real estate slowing and how that’s going to help the inflation picture

Full episode available here and wherever you get your podcasts.

A series of weaker labor market and housing data, better than expected inflation data, and resilient corporate earnings have all contributed to May’s healthy market performance. While inflation has been sticky, signs of a slowing economy are emerging. Heritage Financial CIO, Bob Weisse, and CEO, Sammy Azzouz, discuss these signs, global market valuations and why it could be a good time to rebalance, and explain the how, what, and why of stock splits.

We’d love to hear from you! Email us questions, ideas, or feedback at wealthybehavior@heritagefinancial.net.