REITs vs Stocks daily update – September 20, 2021
As we start the new week, US Stocks continue to fall, today was impacted by China Real Estate. Specifically a company.conglomerate Evergrande seemed to struggle to manage its $300 billion mountain of debt and failed to pay interest to bank loans. This results in it’s shares falling more than 10% and sending a panic and sense of caution to the US and Wall street because financial markets, especially larger companies are connected; the fear that this will spread to the rest of the global markets (article)
How this affects our $1000 investment in Wealthfront –today, we are saw yet another substantial decrease of $16.31 for the day. That puts Wealthfront stocks below our initial investment at $978.63. REITs win over stocks today with a small 18 cent increase, but a running total balance of $1006.51, nearly $28 dollars over stocks. This is mostly due to the stock losses.
TLDR; What’s this all about? I invested $1000 in both REITs (Real Estate Investment Trust) and the Stock Market, and now it’s a challenge to seeing which one will perform better in the next 5 years. You can read the start here.
Here’s the numbers today:
Stock Investment – Wealthfront
Today’s balance: $978.63 (Net returns to date: $21.47 losses)
Day change: $16.31 decrease since Friday of last week – $994.84
Historical info: Invested $1000 on August 2, 2021
REITs – Fundrise
Today’s balance: $1006.51 (Net returns to date: $6.51 gain)
Day change: $0.18 (18 cent growth for REITs today) since Friday of last week – $1006.33
Historical info: $1000 on July 27, 2021 (initial investment)
Wealthfront Funds snapshot:
All lifetime earnings all of these funds are down. US stocks representing a 0.9% decrease overall and Foreign developed stocks showing a 3.3% decrease overall.