Peter Thiel, a PayPal co-founder, invested approximately $2,000 worth of PayPal shares in a Roth IRA during the late 1990’s. Today, those shares are worth an estimated $5 billion, and Thiel won’t owe taxes on any of the gain if he waits until the age of 59 ½ to withdraw money from that account.
Fears that growth has peaked weighed heavily on global equity indices for the second week of the month. Japanese equities were the lone bright spot, with the Nikkei up +4.30% for the week.
Domestic equities posted another week of gains but lost some momentum after a disappointing payroll release. European equities faltered on political news out of Germany, while Japanese equities rallied around their own political news.
The S&P and Nasdaq rose to record levels after Fed Chairman Powell’s comments post Jackson Hole Symposium. Small Cap equities were the biggest winner for the week, gaining +5.05% as investors went risk on.
There is a current euphoria taking place in the public markets, but if you look forward it seems as though we are borrowing from future returns.