I wrote to you a few days ago about how the key news you need to be watching comes from outside the U.S. right now.
It all comes down to the 18.6-year real estate cycle. Understanding it can help you search for the type of news that’s worth following.
It explains the importance of the timing behind these announcements. All you need to do is view the world through the lens of the 18.6-year real estate cycle.
And we’re getting clear information about what 2024 will look like.
It’s become so clear that tomorrow at 7 p.m. ET, I’m holding a briefing about my forecast for 2024 and beyond. (You can sign up immediately right here.)
Here’s what I mean…
They Could Invest Anywhere on Earth but Chose the States
In a not-so-subtle nod to a previous real estate cycle, Japanese investors are once again going all-in on U.S. real estate.
But this time, it’s not America’s trophy assets they’re after.
Rather, they’re focused on one of the prime engines of the ever-growing U.S. economy.
Source: Financial Times
From the above Financial Times article…
Three of Japan’s biggest developers are “aggressively” shopping for housebuilders to buy in the US as they hunt growth outside their shrinking domestic market. Daiwa House, Sekisui House and Sumitomo Forestry are all actively searching for US acquisitions and have approached multiple potential targets, according to four M&A bankers and lawyers familiar with the matter.
The Japanese groups have market capitalisations ranging from Y770bn to Y2.7tn, or $5.3bn to $20bn, making numerous large US companies potential targets.
If you ask me, it was simply a matter of time.
I didn’t know it would specifically be the Japanese investors who would do this… Frankly, there’s so much money on the sidelines it could have come from anywhere.
But my ability to read the economic tea leaves via the lens of the cycle is my market edge.
There’s a reason they call me “the market whisperer.”
There’s a purpose to that… and that is to help my Signal members benefit from U.S. homebuilding stocks going gangbusters all year.
I told them this would happen in 2023…
And tomorrow, at 7 p.m. ET, I’ll be holding a briefing to tell you my forecast for 2024.
Hint – I believe you’ll be able to pocket a decade’s worth of gains over the next two years. Make sure you reserve your spot right here.
Eventually, this kind of outperformance attracts even more money. As the investments grow larger, you’ll hear more and more about what the financial press calls Mergers and Acquisitions, or M&A.
“More and more we are seeing US housebuilders being aggressively courted by would-be Japanese buyers,” said one banker familiar with the companies involved.
Another said they expected at least one deal to be struck before March when Japan’s financial year ends. US homebuilders have seen their stocks rise in recent weeks, recouping most of the losses in the previous four months, according to analysts at BCA Research.
I suppose the fact that these mergers could start as soon as March next year is in no way related at all to the U.S. Fed seemingly having finished raising rates and now actively encouraging the private sector to take the lead and begin lending again.
It’s probably just a coincidence.
Or maybe… it’s the 18.6-year real estate cycle continuing as I expected.
The same one that, via articles like the above, is speaking to you, telling you where we are right now and what’s to come.
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson
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