When investors get scared, they start listening to the Fed.
And today, it’s no different.
With a week of worse-than-expected earnings reports from banks, it’s safe to say the performance of the major U.S. indices hasn’t been impressive.
Hence, this rinse-and-repeat cycle.
All eyes, if you believe the media, are now turning to Jackson Hole and the speech by Fed Chairman Jerome Powell.
It still amazes me to this day that people think the U.S. Fed is omnipotent, able to turn the world’s biggest economy in any direction it chooses via a simple 30-minute speech.
And then, voila, the markets know what they are supposed to be doing.
Laughable, really.
For the entire history of the United States, only one tool can truly inform you about where the economy is today and where it is heading in the near future.
It’s the 18.6-year real estate cycle.
The Only Edge You Can Have in These Markets
It recently occurred to me that studying the history of the real estate cycle is a zero-sum game.
It’s like this… the more you immerse yourself in an economic philosophy where land is the center of everything, the more you realize that whatever mainstream financial outlets and the Fed say is meaningless.
Your knowledge of the power of the real estate cycle can give you the means to remove any confusion you have.
In its place, you get confidence. You develop trust that the cycle will repeat. You use the massive advantage the timing of the cycle can give you to be prepared for action.
Trust me, I don’t care what Jerome Powell will say. I never have.
It’s a state of mind that I strive to develop in you, too.
That’s because as I’ve said before… all financial “professionals” are just guessing.
A quick example. Do you remember China’s Evergrande “Crisis”?
A Failed Media Frenzy
I hazard you might… but may be vague on the exact details. Some of you may not recall it at all.
What it represented at the time was the latest example of media frenzy using the popular “if it bleeds, it leads” news reporting mentality to utterly convince you that the whole world was on the precipice of a monumental crash.
This headline is from September 2021…
Source: CNBC
I ask you to take a moment here and look around. Did any of what was reported in late 2021 actually happen?
Did your world irrevocably change since then?
Of course not!
But the formula remains the same. Fast forward to last week… again, the same news provider.
Source: CNBC
Can you feel the emotion ramping up once again? Now, it’s the time for emerging markets to be wiped out.
Will they be right this time, or will you forget about this in a few months?
I will be blunt…
While I’m sympathetic to the people directly affected by these events, I do not care.
I don’t care about what these headlines are trying to make me think. I don’t care what Jerome Powell will or will not say.
The fact is, when those Evergrande headlines first appeared, my readers and I were instead using our knowledge of the 18.6-year real estate cycle to invest in those sectors the cycle suggested would outperform.
Imagine that! Does ignoring the noise completely and instead making your hard-earned capital work hard for you sound appealing?
Look… I’ve been forecasting the market for years. It’s allowed me to grow my wealth in an incredible way.
And my mission now is to help regular folks do the same.
Check out my recent briefing about how you can learn to play the real estate cycle like nobody else can.
So will you be tuning into this Jackson Hole speech now?
Or will you use that time to join me and many others who benefit daily from the best market edge available?
My hope is it’s the latter.
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson
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