Worst Stock Picks 2024 (So Far)

And, equity crowdfunding review 2024.

July 05, 2024

Today is Friday, July 5, 2024.

The Early Bird Index today is 75.15.

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Worst Stock Picks 2024 (So Far)

The stock market is up in 2024, with the S&P 500 up 15.3% in the first half of the year. However, some stock sectors struggled and disappointed investors.

Biggest Loser: Real estate was the worst-performing sector in the first half of 2024. It lost about 6% of its value and was the only sector to decline in 2024.

Early Bird’s Nest Egg Gains: The horrible first half for real estate can be chalked up to several factors.

  • Higher for longer interest rates have made borrowing for real estate purchases more expensive. Inflation is still higher than expected.

  • Real estate companies are also very sensitive to interest rates because they often carry a lot of debt. Higher rates mean higher borrowing costs, which hurts profits.

  • REITs (real estate investment trusts) are facing competition from other high-yield investments, including savings accounts, that offer better returns in 2024.

Other Laggards: Real estate is not the only struggling sector in 2024. The materials sector only gained about 4% and consumer discretionary stocks increased by just 5%. Material stocks are down because of economic uncertainty and supply-demand imbalances. High interest rates and lower consumer spending are challenges for discretionary stocks.

Final Thoughts: Is it possible that these failing sectors turn things around in the second half of the year? Yes! Some analysts believe that the sell-off in real estate stocks may be overdone. If interest rates decline, these stocks could benefit.

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Notables

Notable Earnings Today: N/A.

Notable IPOs Today: RF Acquisition Corp II Ordinary Shares (Nasdaq: RFAI).

Notable Equity Crowdfunding Campaigns Ending Today: Hit The Spot! (Honeycomb).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET), Private Nonfarm Payrolls (8:30 a.m. ET), Fed Monetary Policy Report (11:00 a.m. ET).

Equity Crowdfunding Review 2024

How is equity crowdfunding going in 2024? Let’s find out.

Definition: Equity crowdfunding allows everyday investors to invest in startups online. Investors received equity or debt.

Success Rate: About 23% of startups are reaching their funding goals in their equity crowdfunding campaigns, according to the platform NextCrowd in 2024.

Biggest Raises: Who’s raised the most money from investors in 2024 so far? According to KingsCrowd, Miso Robotics and AtomBeam AI each raised $6.8 million.

Problems: It hasn’t been all good in equity crowdfunding. The equity crowdfunding platform Mainvest closed in June.

Final Thoughts: Investing in startups can be rewarding, but also risky.

Shiba Inu’s Bad Week

The cryptocurrency Shiba Inu is having a bad week and is down over 10%.

Final Thoughts: A big reason for this decline is because meme coins are considered risky during times of higher interest rates.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.