Last Time the Market Was This Expensive, Investors Waited 14 Years to Break Even
In 1999, the S&P 500 peaked. Then it took 14 years to gradually recover by 2013.
Today? Goldman Sachs sounds crazy forecasting 3% returns for 2024 to 2034.
But we’re currently seeing the highest price for the S&P 500 compared to earnings since the dot-com boom.
So, maybe that’s why they’re not alone; Vanguard projects about 5%.
In fact, now just about everything seems priced near all time highs. Equities, gold, crypto, etc.
But billionaires have long diversified a slice of their portfolios with one asset class that is poised to rebound.
It’s post war and contemporary art.
Sounds crazy, but over 70,000 investors have followed suit since 2019—with Masterworks.
You can invest in shares of artworks featuring Banksy, Basquiat, Picasso, and more.
24 exits later, results speak for themselves: net annualized returns like 14.6%, 17.6%, and 17.8%.*
My subscribers can skip the waitlist.
*Investing involves risk. Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.
Happy New Year’s Eve, my wonderful Cents of Humor Villagers! You have brought me so much joy this year, and I truly appreciate you reading this newsletter each and every week. I’m excited for 2026. I started this past year in a terrible place. I was 6 months pregnant and recently laid off. Now, I’m ending this year with an 8-month-old who is about to start crawling and a new portfolio career that has me feeling invigorated. My musical parody had a successful off-Broadway run (you can still get tickets for this final weekend!) This year hasn’t been easy, but I’ve learned a lot about myself and what I’m capable of. Writing this newsletter has really been a highlight.
(You can listen to me talk about my portfolio career on The F. Word podcast with Priya Malani)
Before we say goodbye to the holiday season and 2025, I want to take a moment and think about what we can achieve financially together in the coming year. As we’re all aware, most folks abandon their resolutions by early February. I think it is absolutely insane to think you can change your entire life with a New Year’s resolution. We are mere humans, and we are busy as hell. Instead, let’s take the more realistic approach by setting mini-goals. Let’s eat this elephant one bite at a time, baby!!
The following ten items are things you can complete fairly quickly, but will have a lasting effect on your wealth building. Small, actionable steps lead to more motivation and greater results. Let’s get into it.
Open and build your emergency fund - Don’t overthink it. Open a high-yield savings account. Aim to save $500, then $1,000, then a month’s worth of expenses, then 3-6 months. You can do it, slowly but surely. Every little bit counts. Open the account.
Increase your investments or savings by 1% - Log into that 401(k) and up your contributions by 1%. If you put in 8% last year, now you’re putting in 9%. Or if you’re working on saving or investing outside of your retirement account, increase that by 1%. Baby steps.
Create a debt repayment plan - If you have debt to pay down, especially if it’s high interest debt, let’s make a plan to pay it down this year. The avalanche or snowball method is up to you; pick one and begin.
Learn about investing through one book, podcast, or video - If we’re not learning we’re not growing. There are so many low-lift ways to learn about money and investing. Start with one book, one podcast, or one YouTube video.
Create one short-term, one intermediate, and one long-term financial goal - if you’re unsure how to set a financial goal, get really clear on what you want your life to look like and then reverse engineer it.
Cancel one subscription - You have too many subscriptions. You know it. I know it. We all know it. Cancel one this week, I promise you won’t miss it.
Ask for a raise or make a plan to increase your income - The best way to build wealth is by increasing your income. You deserve a raise. You are resourceful enough to figure out ways in which to bring in some extra income. I believe in you.
Track your spending - This is the year we start tracking our net worth growth and understanding where our money is going. Check out Monarch. (Full disclosure: I am a freelance writer for them now! Check me out on their blog.)
Negotiate one of your bigger annual bills - Shop around for cheaper homeowners/renters insurance. See if you can find a better auto insurance rate. Ask your gym for a discounted membership. There are a lot of places you can save money with a bit of time and effort.
Learn about your own money scripts and mindset - So much of our relationship with money is based on irrational fears and/or stories we tell ourselves. Take a bit of time to learn about your money scripts. You might be self-sabotaging your financial progress without realizing it.
In 2026, my goal is to continue growing this community and helping you and your family live your best financial lives. Happy New Year!!
-Catie