Video Update - How To Make Money Investing In 2025

Patience, strategy, and some cold blood

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Editor’s Note: Tim just released his latest Premium-exclusive weekly video covering what to do to invest successfully in 2025 Below is a brief preview. Upgrade to Premium to access the full video and transcript.

As we begin 2025, it's important to understand that we're entering a period that requires patience and strategic thinking. The market environment presents both challenges and opportunities that warrant careful consideration.

Current Market Conditions

The real estate investment trust (REIT) sector is experiencing sideways movement, while long-term interest rates have shown modest upward pressure. However, this hasn't significantly impacted our portfolio of preferred shares, exchange-traded bonds, and closed-end funds. During this period of relative stability, our investments continue to generate approximately 5.5% in dividend yields, providing steady income while we await more attractive entry points.

A notable bright spot in our portfolio has been the natural gas sector. Granite Ridge Resources, in particular, has appreciated by 12%. While this appreciation is encouraging, the fundamental reason for holding this position remains unchanged – the substantial dividend yield relative to our cost basis and the improving industry dynamics.

Market Dynamics and Policy Considerations

Today's market activity illustrated the current sensitivity to policy statements. An initial rally, driven by speculation about potential changes to tariff policies, was quickly reversed when President Trump confirmed his commitment to existing trade policies. This volatility underscores the importance of maintaining a long-term perspective, particularly as we approach the inauguration.

It's crucial to distinguish between prevailing narratives and economic realities. Despite widespread concerns about economic conditions, key indicators paint a more nuanced picture. The labor market remains robust, with strong employment figures that would typically generate significant wage inflation were it not for current immigration patterns.

The real estate market, particularly in the office sector, requires careful analysis. While headlines focus on an 11% default rate in commercial mortgage-backed securities, this primarily affects lower-tier properties. Class A office buildings, which constitute our REIT holdings, continue to demonstrate strong occupancy rates and growing demand, potentially leading to supply constraints in premium office space.

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