From a political standpoint, don't see a change in the stock market. From a performance standpoint, I see a big change. Price/Earning ratios make it not worth investing. All recent increases and near-term future increases are just gambling. At some point the House wins.

To put it in Self storage terms, very similar to my C market comment above. Even if you had the demand when would you stop building? Currently units run around $4,100 erected and let's say in a C market you rent a 10x20 for $70. Let's say the cost goes to $4,500; then $5,000, then $6,000 while your rental rate stays at $70. At some point your Price/Earnings ratio is not sustainable. We are there in the Stock Market, and also in C markets for Self-Storage. Plus, if you dive into the Stock market there are only about 5 companies making the S&P rise. We are in the Stock market, but those funds are for 15 years and out.

We just ordered 200 new locks. Made in China. If tariffs come into play, or any conflict those products become nonexistent and when we switch to a different country source, they will have tripled or quadrupled. Note: Those locks will get shipped here on a Cargo or Conex container.

Shipping Containers are virtually all made in China. They are made out of Core Ten Steel, to resist Saltwater environment which requires Virgin Steel. China has cheaper labor, almost no EPA constraints, far cheaper electric power with their new Dam, etc. Even if products are shifted to new countries, you still need a container to ship them. The US mainly does recycled steel production since it requires far less energy and potential EPA issues, but recycled steel can't be used in most technical situations. We would have to switch back to Iron Ore mining and more Coal energy, which both have significant EPA or political issues. Almost 100% of all Self Storage buildings are made out of recycled steel, since their usage is not technically demanding. So, I don't see a cost increase to our buildings themselves. We are currently running the numbers for a new storage location. In each Phase 1/2/3 we would use 100 "1 trip" or new 20-foot cargo containers, priced at $2,800. During Covid you could not find them since shipping ports were closed, plus their price went up to $5,000. We would financially not be able to complete the project. However, all products shipped via Cargo Containers or Conex's will go up due to a lack of availability of containers. Actually, our ports would get clogged with stranded empty Chinese containers. Ownership and usage would be in question; thus they would be tied up legally.

Concrete material components are mainly sourced in the US. Thus, no political impact to material costs. However, most of the concrete crews are Spanish. ****Forget the Political**** side of the discussion. If a significant portion of low income laborers were to be deported, both the cost and availability for pouring new concrete would become stressed. Even if every Concrete crew was "legal", wages would pull them to other low paid laborer jobs such as landscaping, house framing, meat packing, etc, causing wages and cost to go up for new Self Storage Construction, let alone availability.

Security Systems- yep sourced overseas, China.

Interest rates going lower, but I expect Inflation to go higher. Thats not possible, right????? Wouldn't the Federal Reserve just increase interest rates to reduce Inflation???? By next Fall of 2025 I expect inflation to start to skyrocket. The Feds won't be able to increase the Interest rate, because the US debt level has gotten so high and banks are still under stress with low prior loan rates, but high interest costs. The US government is also refinancing our debt every year, and we can't take a doubling or tripling of the interest rate. They will start to print money, which creates inflation. Inflation whether due to material costs, material shortages, labor shortages, labor wage hikes, or just increase growth demands, etc won't be curtailed starting 4th quarter of next year. Impact to Self-Storage is growth will slow down. Even consolidation into REITS will slow down. Only "A" markets where 10 x 20's rent for $130 or higher will be able to justify the increased building costs.

Crystal Ball. Is any of the above, correct? Probably not. But it's what my thoughts are and determines how we will operate and spend our money.

I always tell people it's your Money, your always right, even if you're wrong. We own our decisions.

Not a financial advisor.