I’m not an optimist…
The state of the world today isn’t the best, and some situations may get much worse before they get better.
But when it comes to investing, I am quite certain… now is one of the best times in the 18.6-year real estate cycle to put your money to work.
We’re looking at years of economic expansion…
Here’s the latest proof.
It’s Like a Snowball Effect
At this stage of the 18.6-year real estate cycle (I call it the Eleventh Hour), growth accelerates.
Land prices go up, and they drive the value of other assets higher, too.
Governments try to stimulate the economy as much as they can.
For example, the Biden administration passed several massive laws aimed at promoting domestic high-tech manufacturing and infrastructure. The Inflation Reduction Act, the CHIPS Act… between these two, hundreds of billions of dollars are slated for expanding the U.S. semiconductor manufacturing capacity, green infrastructure, and others.
Well, it doesn’t stop at the federal level…
The Financial Times reports that states are now competing for investment. Every state governor wants to earn a political win by breaking ground for a high-technology or clean energy manufacturing facility.
In 2022, state-level governments offered $24 billion in corporate tax breaks, almost three times higher than in 2021.
This is the “snowball effect” that is part of this stage of the 18.6-year real estate cycle.
And a lot of investors don’t even appreciate it.
Most Investors Won’t Notice This Until It’s Too Late
Ninety-nine percent of investors will never put this information in context.
Yes, they may be aware that there are a couple of multibillion-dollar support packages that the Biden administration introduced…
But they won’t understand how that impacts growth and what it means for the markets.
Some of them may even be against these packages…
I’m not trying to make a political argument here. All I’m saying is this level of economic support isn’t unusual at this stage.
And if you want to play it smart, you need to use it to your advantage. (My The Signal readers are aware of these opportunities.)
The only thing I care about is your investment returns.
And right now, the 18.6-year real estate cycle tells me that you can pretty much count on global governments spending trillions of dollars in total to make sure that the world economy doesn’t stall.
Some of them will be more successful than others.
The United States has so far delivered stellar growth. In the third quarter, its economy expanded by almost 5%. Unimaginable.
And now that states compete against each other to attract investments and jobs… well, this growth “snowball” is going to get bigger and move faster.
Best of all, it’s not too late to act now.
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson
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