You may have heard that there are tensions between the United States and China.
Trade… national interests… the Taiwan situation.
If you followed mainstream media, you’d think that the U.S. and China are almost at war.
Or that they are close…
Well, the market thinks otherwise.
I’ll explain that in a moment. And I’ll show you that regardless of what you see in the media, the 18.6-year real estate cycle continues οn a global scale.
It’s All About Growth
In what I call “the Eleventh Hour,” markets are optimistic.
Liquidity is abundant, and most assets appreciate.
The countries that grow more than others get the most attention… but by the time the cycle is about to turn, growth is all-encompassing.
The United States has traditionally been the first in and out of the cycle.
And now that its economy looks like “the least worst” out there, investors are paying attention.
In fact, they crave U.S.-based assets.
And – gasp – even China-based investors have realized that.
Can China Even Invest in the U.S.?
Yes, there are investment products in China that offer U.S. exposure.
Chinese investors can purchase exchange-traded funds (or ETFs) and mutual funds under the Qualified Domestic Institutional Investor (QDII) program.
Nasdaq ETFs are in particular demand, according to Reuters.
Oh well, everybody wants a piece of something that has returned 34% this year. And artificial intelligence has been making waves worldwide.
To me, this is nothing new. In fact, back in June, I said this about AI:
This time, it appears to be artificial intelligence [that leads the cycle].
It’s everywhere. And nobody understands what it really means.
It’s popular because it’s popular. But everybody and their uncle will try to get in on this.
It’s like the bitcoin bubble never happened… or the dot-com crisis…
If you think the markets are going to collapse from here, then I think you’re on the wrong tram – or train – or plane.
We’re in for another crazy ride.
Well, thousands of Chinese investors (among millions of others) and about $165 billion in QDII-qualified funds have just confirmed what my readers knew already.
It’s a melt-up, and investors don’t care about geopolitical tensions or what the latest talk between the U.S. and Chinese officials was about.
They want growth.
And they have invested over $100 billion desperately trying to see some in their portfolios.
Granted, $165 billion isn’t that much. The total U.S. equity market was worth about $46 trillion at the end of June.
But it’s a sign. Overseas investors are adding their funds to the total amount of capital sloshing around the U.S. markets, driving them higher.
The total foreign direct investment in the United States is growing. In 2022, about $5.3 trillion was invested in the country, about $216 billion higher than in 2021.
Everyone wants in on this. But not everyone knows how to pick the right investments during the Eleventh Hour period.
But I do…
And I’ve been setting my premium subscribers up for success in The Signal. Out of eight open positions, seven are up, with four up double-digits. And my readers already scored a 52% winner in just over three months…
I’ll lay out how you can, too, right here.
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson
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