“Real” is such a loaded word.
Because in this day and age, “real” is whatever people believe in passionately.
They mistake emotions for truth.
This is something a teenager could get away with, but it’s too common in both political and financial circles.
The 18.6-year real estate cycle doesn’t care how you feel. It moves along, and the smartest thing to do is to acknowledge and adjust.
Here’s an example of how the expert community continues to misunderstand what’s really happening.
Experts Continue to Ignore the Elephant in the Room
The clues about what the U.S. economy is “really” doing continue to come.
This is despite the context of war, ongoing bond market rout, and fears of recession.
Look, it’s hard to pull one’s eyes away from all these serious issues.
However, for the sake of your own sanity and investment future, you absolutely need to do that right now.
It’s something I try to do here for you.
Below is an example of the type of news you need to be focused on right now.
Source – CNBC
This news isn’t making the front pages. I needed to click once or twice to get to it, which is too much effort for most readers.
Despite a ban on semiconductor chips in China, and all that’s occurring around the world, big business is simply getting on with the job of increasing market share and growing earnings for their shareholders.
Micron isn’t the only U.S.-based semiconductor manufacturer. Thus, the media have always believed the bans on exports of high-end chips to the Chinese market would be a significant hindrance to this company.
Nothing of the sort is happening.
From the CNBC article…
Meanwhile, Micron is doubling down on U.S. manufacturing. Its current leading-edge chips are made in Japan and Taiwan, but Micron is aiming to bring advanced memory production to the U.S. starting in 2026 with a new $15 billion chip fabrication plant in Boise, Idaho. Micron celebrated its 45th anniversary in October by pouring the first cement at the new fab.
Micron is planning the biggest chip project in U.S. history, spending $100 billion over 20 years to build four 600,000-square-foot fabs in upstate New York.
The company can only boast a very small share (2%) of the world’s dynamic random-access memory, or DRAM, chips.
However, this will change due to the U.S. government’s initiatives.
The company is getting assistance from the federal CHIPS and Science Act, which offers billions of dollars to incentivize domestic production. From the same article…
With Micron’s investments through CHIPS support in Boise, Idaho, as well as in Syracuse, New York, that 2% over the course of nearly 20 years will be changing to about 15% of the worldwide production coming from the U.S.
On what planet precisely is this not some of the most bullish news you could ever read? And in one of the most sought-after tech sectors that rival countries are fighting right now to control?!
Make no mistake – this is the end game for the U.S. government: domination of the most high-end semiconductor chips made on earth.
If you want to succeed with your investment portfolio during the final few years of the current real estate cycle, here is a classic example.
And it “really” matters. Really.
Find a listed company that has secured its own “moat” against future competition and one whose future growth prospects involve the productive use of vast tracts of land it owns.
I’m not saying that you should buy Micron. I need to make the necessary disclaimer that this isn’t an investment recommendation.
But I do see opportunities in this sector… and I urge you to join my “inner circle” group of subscribers who really know what to buy.
Editor, Cycles Trading with Phil Anderson
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