The signs are everywhere…
The 18.6-year real estate cycle is accelerating. Too bad that most investors won’t be able to become part of this.
They don’t get it… they’re still worried about interest rates and inflation, and some are still seriously discussing the probability of a recession.
There won’t be one anytime soon.
On the contrary… if you look for the right signs, you’ll see that the cycle develops just as I predicted. And right now, we’re in one of the most exciting stages of the cycle.
It’s the melt-up phase…
Did You Miss This News?
I said in the past that one of the most reliable signs to look for to understand where we are in the cycle is to look for strange things that nobody understands soar in value.
Enter bitcoin…
Just recently, the U.S. has approved several ETFs based on spot bitcoin.
Its price fell afterward, but I wouldn’t draw any long-term conclusions based on that.
However, in one region of the world, bitcoin and other crypto assets are all the rage.
In China, investors feel burned by equities. The country’s stock market has been in decline for three years.
So their answer is… crypto.
From Reuters:
[M]ore and more Chinese investors are using creative ways to own bitcoin and other crypto assets that they believe are safer than investing in crumbling stock and property markets at home.
But it gets better…
[Equity analyst Charlie] Wong believes Chinese officials are cognisant of how disruptive bitcoin can be and yet aware of its huge potential, and hence their endorsement of crypto trading in Hong Kong, to keep a toehold in the crypto business booming in financial centres such as Singapore and New York.
Chainalysis reckons the developments “have created speculation that the Chinese government may be warming to cryptocurrency and that Hong Kong may be a testing ground for these efforts.”
Do you understand what this means?
China Keeps Pushing the Cycle Forward
If millions of desperate investors from China start rushing into bitcoin, it will be back in the news like there’s no tomorrow.
For now, Western investors haven’t paid too much attention to this.
But they will, eventually. And whatever happens to crypto on the opposite side of the world will create more bitcoin buzz in the U.S.
Do Chinese investors understand it better than the U.S.-based ones?
I bet they don’t. They buy it not for what it is (does anyone even know?) but for what it isn’t.
It’s not stocks, it’s not bonds, it’s not gold.
They buy it for what it isn’t… which tells me that we’re in the stage of the cycle where people don’t really understand what they are getting into… and they don’t care enough to do so.
That’s exactly how this stage works. And for those who know where to put their money, it’s about to become really profitable.
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson
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