#MarketTrends
Top 10 Expensive Cities: Can You Afford Them?
Housing affordability in 2024 is assessed across 94 markets in eight countries, highlighting the most unattainable cities based on median price-to-income ratios.
Hong Kong tops the list with a ratio of 16.7.
Conversely, Pittsburgh is the most affordable at 3.1. Cities with ratios above 9.0 are deemed "impossibly unaffordable."
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The Insight: How To Find The Opportunities
Consider investing in real estate companies and REITs in cities with high median price-to-income ratios (e.g., Hong Kong, Sydney).
They may offer solid returns due to demand.
Conversely, lower-ratio cities (e.g., Pittsburgh) might present opportunities for development and growth investments.
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#QuoteOfTheWeek
“Buy land, they’re not making it anymore.”- Mark Twain.
Mark Twain's advice underscores the finite nature of land, making real estate a sound long-term investment.
As urban areas grow and housing demands increase, properties in strategic locations will likely appreciate.
Diversifying your portfolio with real estate investments can offer stability, capital appreciation, and potential rental income.
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#What is happening?
ASX 200 Soars: What's Driving This Surge?
Last week, the Australian stock market demonstrated positive momentum, with the ASX 200 closing up by 0.9%.
This increase followed the Reserve Bank of Australia's (RBA) decision to keep its cash rate target steady at 4.35%, aligning with market expectations.
However, the RBA's comments took a more hawkish tone, emphasizing stronger-than-anticipated household spending and potential inflation risks.
Notably, Governor Bullock mentioned that the Board had contemplated a rate hike for the first time in this cycle.
Despite this, we still foresee no rate cuts this year.
Utilities and Financials were the top-performing sectors, while Materials, Technology, and Industrials lagged behind.
Nvidia Overtakes Microsoft: Tech Market Shake-Up!
In the United States, stock market performance was mixed.
The Dow Jones and S&P 500 closed the week up by 1.5% and 0.6%, respectively, while the Nasdaq remained flat.
A softer-than-expected retail sales report for May, which rose just 0.1% against an anticipated 0.3%, bolstered the soft-landing narrative and fueled hopes for a potential rate cut in September.
In the Tech sector, Nvidia surpassed Microsoft to become the world's largest company, underscoring the dynamic shifts within the market.
Stabilizing Lithium: Will Prices Rebound Soon?
The price of lithium has stabilized with a new pricing floor.
The slowing electric vehicle (EV) market, coupled with an increasing lithium supply, drove the price down 79% from $66,000 per tonne in February 2023 to $13,800 in late May.
Producers are now attempting to protect their margins and the lithium price itself by cutting production, establishing a new price floor.
Commodity analysts predict lithium will be in oversupply until 2028, but there could still be price appreciation in the near term if demand rebounds or supply constraints persist.
China Home Prices Plummet: Biggest Drop in a Decade!
China's home prices have fallen the most in a decade. Despite the latest round of stimulus measures, the country's property market remains sluggish.
Other sectors also delivered disappointing results, with industrial output and fixed asset investment falling short of forecasts.
However, there was a silver lining in the form of better-than-expected retail sales figures.
China is increasingly reliant on exports, which are facing challenges due to a growing list of tariffs.
Fortunately, global investors have limited exposure to China’s local economy.
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Best Regards,
James Lim, SFA Founder
Disclaimer:
Stewardship Finance Academy does not provide financial advisory services. The content in this email/website serves solely for general educational purposes and is crafted without taking into account your specific objectives, financial status, or requirements. It is advisable not to depend on any guidance or information from this website. Prior to making any investment choices, it is suggested that you assess its suitability for your circumstances and consult with relevant financial, tax, and legal professionals.
Top 3 discussed stocks : $NVIDIA Corp(NVDA)$ $Tesla Motors(TSLA)$ $Apple(AAPL)$
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