Rachel’s note: Rachel Bodden here, managing editor of Cycles Trading with Phil Anderson.

Recently, Daily Cut editor Chris Lowe caught up with Phil about some of Phil’s “crazy” predictions from April… as you’ll see, back then, Chris was skeptical of Phil’s extraordinary track record of market calls…

But now Chris says Phil’s changed how he sees the stock market…

That’s because in April, Phil went live with a forecast that went against all mainstream financial analysis… but just three months later, it’s been proven correct.

And now he’s back with more forecasts about the Eleventh Hour – which is the stage of the real estate cycle that only comes about once every 20 years – and it can change the trajectory of your retirement if you know how to play it.

It pays to sign up to see what Phil’s next prediction is… and how to play it. Reserve your spot automatically right here. Then read on for more about the Eleventh Hour melt up…


Q&A With Chris Lowe and Phil Anderson

Chris: So Phil, we met in Florida in April to launch your premium advisory, The Signal. And you had an unusual prediction for the markets at the time, which you call the “Eleventh Hour.”

It wasn’t a bearish prediction, but a bullish one. So, talk folks through what the Eleventh Hour is and maybe also touch on the cycles approach to trading you follow.

Phil: I based my prediction off a real estate cycle that averages 18 to 20 years. It’s the length of time it takes for the real estate market to go through one full boom-bust cycle.

You can see it in action in the U.S. from about 1800 to today. In Britain, you can trace this cycle back to roughly 1600.

I did a lot of research into this cycle for my book, The Secret Life of Real Estate and Banking. And I saw that history repeated in those 18-to-20-year cycles. It was astounding.

To get back to my recent prediction, I had looked back over the past 20 years, to 2003. This was after the dot-com crash that began in 2000. By 2003, the tech-heavy Nasdaq was down about 78% from its high. And that year, it rocketed about 50% higher.

Then I looked at 1983. That was right after another bearish year in 1982. But in 1983, the S&P 500 shot up 17%.

Same goes for 1963. It was right after the Cuban Missile Crisis in October 1962 and a lot of scary headlines about nuclear annihilation. But in 1963, the S&P 500 was up 20%.

And this cycle repeats. We got a bearish year in 2022. So I predicted we were going to get a panic upward from the March low for the S&P 500. A melt up, in other words.

We talked about it in an interview we did at the end of March. That was right around the time of all the regional bank collapses in the U.S. Nobody was even suggesting a recovery, let alone a melt up.

It was a ballsy call, if I may say so. Things looked grim in March. Silicon Valley Bank went bust. Then Signature Bank. Then First Republic Bank. It was the worst string of bank runs since the 1930s.

I don’t blame people for feeling nervous. But I showed how… if history was to repeat… March would be the bottom of a big move higher for stocks.

Chris: Why are so many Wall Street economists saying the exact opposite to you? What do you see that they don’t?

Phil: I’m not a conspiracy theorist. But I’ve been able to show that the economics profession has lost its way. Economists have written the real estate cycle out of the textbooks. That’s because the land is often a political question rather than an economic question.

The second thing, which I also learned from history, is that the Fed is always behind the curve. The issue was never about interest rates going back. That had to happen at some point. They can’t stay zero or negative forever. It’s an unreasonable proposition. So I wasn’t too worried about that.

And the third thing is that interest rates do not affect U.S. house prices. When I say this, it astounds people. But history shows it clearly. One does not affect the other. So I wasn’t worried about a housing crash, like many analysts on Wall Street were.

In fact, when interest rates go up, often housing prices rise along with them.

That tends to mark the Eleventh Hour extreme move into the top of the cycle – a melt up, in other words.

And here we are now, three months after my prediction. And lo and behold, 2023 is looking like 2003. The Nasdaq was up 50% in 2003. So far this year, it’s up 32%.

This year is also looking like 1983, when the S&P 500 rose 17%. And it’s looking like 1963. The S&P 500 rose 19% that year, despite the panic after the JFK assassination in November of that year.

So what should you do instead of tuning into the supposed “experts” on CNBC and on social media?

I’d say study history, join me for my Eleventh Hour – Last Chance event on Wednesday, July 26 at 8 p.m. ET, and I guarantee you a genuine paradigm shift. It will allow you to tune out of mainstream economic forecasts. And it shows you how to track these cycles yourself.

Chris: Phil, since I talked with you and we had some time to hang out in Florida, I have changed how I see the stock market. Correct me if I’m wrong, but you look for a top in the housing market before a top in the stock market. Then the stock market bottoms before the housing market. So, a rally in stocks off a bear market low tells us that the housing market will pick up again.

Phil: That’s a decent summary. I’m expecting the land market will peak before the stock market. But first, we’ll get our Eleventh Hour melt up, which is just history repeating.

Chris: On April 11, you recommended a homebuilder stock to your subscribers at The Signal. It’s up 53% since then. So, you’re not talking about these cycles in the abstract. You’re connecting the cycles you track with stock recommendations. What was your thinking behind that?

Phil: My mantra is “the right stock at the right time.” That was an example of that mantra in action. The market was betting on a fall in the housing market. Thanks to my knowledge of the cycle, I knew they were likely wrong.

Chris: For folks who missed the run up you predicted for 2023, what do you see heading into the rest of the year, next year, and beyond?

Phil: Should history repeat – and there’s no reason why it wouldn’t – the melt up has only just started.

Seriously, in the past these Eleventh Hour melt ups have been big. You think about the mid-2000s, and the late 1980s – the stock market made some massive gains. Same goes for the late 1960s. In all cases, stocks did very well.

So, I’m expecting a really big move higher.

How big?

That’s yet to be seen. But history suggests it will be massive.

Chris, as you know, the Eleventh Hour is here… but it is readers’ last chance to get in for life-changing, even generational wealth. They won’t see this moment again for 20 years.

That’s why I’m holding an event called The Eleventh Hour – Last Chance on Wednesday, July 26 at 8 p.m. ET.

During this briefing, I’ll go over what to expect during The Eleventh Hour…

I’ll talk about how our readers can learn to “see” the reliable cycles and patterns the market has followed for hundreds of years… and learn to forecast markets themselves.

They can RSVP right here to join me on Wednesday, July 26 at 8 p.m. ET.

Chris: Thanks Phil. Looking forward to that.


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