
May 19, 2025 Investor Insights
Real Estate vs. Stocks
May 19, 2025
Enjoy this week's "Investor Insights," a weekly newsletter that highlights the financial news you need and provides tips and tricks for making better investment decisions.
- The S&P 500 fell 15.3% from the start of the year to April 8th. It then performed a “V-shaped” recovery, rising an astounding 18.1%. The last time the stock market erased a 15%+ decline in less than six weeks was back in 1982. *1
- Moody’s Ratings stripped the US of its AAA credit rating. This is partially a result of the fact that the federal budget deficit is now running at around $2 trillion a year, and the government debt is expected to reach 107% of GDP by 2029. 2
- Even though the stock market has significantly outperformed real estate over the last 50 years, a recent Gallup survey shows that 37% of Americans think real estate is the best long-term investment compared to just 16% for stocks. 3
- Americans’ expectations for income growth over the next year fell to 2.6%, the lowest since 2021. Respondents also now believe there is less than a 50% chance (49.2%) that they could find a job within three months if they became unemployed. 3
Sources:
- Bespoke Investment Group - “Trillions Lost and Found for Mega-Caps”
- Bloomberg - “US Loses Last Top Credit Rating With Downgrade From Moody’s”
- MFS Beyond the News - “BTN 5/12/25”
*Past performance is not indicative of future performance
Disclosure: This information is furnished for the use of Glen Eagle Advisors, LLC, Glen Eagle Wealth, LLC, and their clients and/or contacts. It does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific objectives, financial situation, or particular needs of any specific person. Investors reading this commentary should consult with their Glen Eagle representative/financial advisor regarding the appropriateness of investing in any securities or adapting any investment strategies discussed or recommended in this newsletter.
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