How do you get rich?
You get rich by buying when others are fearful… and selling when they are greedy.
That’s the only way of making any serious money.
Bloomberg reports:
Zara founder Amancio Ortega, Spain’s richest person, expanded his global portfolio of commercial real estate last year, acquiring at least 10 properties across North America and the UK for more than $2 billion.
Other ultra-wealthy individuals and their investment firms remained focused on the asset class, which was among the hardest-hit by the pandemic and the lasting consequences of remote work, according to Knight Frank’s 2023 Wealth Report.
I bet a lot of investors didn’t pay attention to this headline…
Instead of trying to understand how the world’s wealthiest invest, they followed the day-to-day noise such as these news bits:
If you look at the daily noise, you’ll be scared… real estate prices are falling, it’s time to sell, isn’t it?
Of course not.
It’s time to buy and ride the second part of the 18.6-year real estate cycle.
It’s Not Too Late to Learn
2022 was hard on everybody… I get it.
If your portfolio suffered serious losses, I empathize. Being an investor is not easy.
If it were, everybody would be a millionaire.
However, it’s never too late to learn… both about how the markets work and how to manage your emotions.
And for the next two or three years, I see a lot of potential. If historical patterns are any guide (and mark my words, they are the best guides), the current cycle in real estate and stocks has significant room to run.
In February, I wrote:
We might see interest rates drop a little in 2025, similar to what happened in the 1920s. That’s likely when the U.S. will have to rescue the rest of the world… as it usually does.
But not yet. Not now. And not because I say so, but because the 18.6-year cycle tells us that 2025-2026 is when we’ll see the top of this current cycle. Just as we saw it top in 1955, 1973, 1989, and 2007.
You should learn from history… and history suggests that the short-term housing price drop is a classic “dip.” There’s more upside coming.
That’s what the world’s richest people recognize, and they’re acting on it.
How do you think they got rich in the first place, for heaven’s sake?
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson