Blackstone just announced a historic 73% collapse in profits year-over-year in their most recent earnings report. Making their 2023 Q4 their second-worst financial quarter in a decade, driven by heavy losses in real estate.

This decline in profits was due to a big drop in the value of their real estate portfolio, particularly commercial real estate values. With values of office buildings crashing by as much as 50% in certain cities.

Despite these declines, Blackstone's stock price actually surged on the news of their earnings report. Up to a near-record high price of $123/share. Which nearly matches the peak in the 2021 bubble. All the while, Blackstone's income is way lower, putting the stock at a near record-high P/E Ratio of 52x.

In a similar way, the US Housing Market is also overvalued, trading at an income multiple that is also near a record high. With home prices 30% overvalued compared to their long-term norms. Despite this housing market overvaluation, Blackstone pressed ahead last week in acquiring Tricon Residential, a big Wall Street landlord who owns nearly 40,000 houses.
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