Another day, another record.
On Wednesday, the S&P 500 kept climbing. It has been reaching record highs for four days in a row.
But something is changing about what’s driving the index…
It’s not just everyone’s tech darlings that keep going up.
(Note, however, that Microsoft has just reached $3 trillion in market value. Another massive record.)
Other businesses are soaring in value… exactly as my 18.6-year real estate cycle predicts.
Buffett’s Berkshire and Visa Are on a Roll
If this rally was all about tech, you wouldn’t see this.
But both Warren Buffett’s Berkshire Hathaway and Visa, the credit card provider, reached their all-time highs.
What does this performance tell you?
Well, look at what Berkshire Hathaway holds…
Its top five positions as of the most recent filing were Apple, Bank of America, American Express, Coca-Cola, and Occidental Petroleum, according to HedgeFollow.
Apple is a bet on progress, Bank of America, Amex, and Coke are bets on the American consumer… and Occidental is an oil company that will also benefit if the U.S. economy continues to grow and uses more energy.
See what I mean?
Buffett’s top investments are essentially bets on economic expansion.
The same applies to Visa. The fact that its price is at an all-time high tells me that the market is betting that Visa will continue supplying consumers across the world with affordable credit.
This Is a Classic Late-Cycle Setup
The market has finally realized where things are going.
No, we aren’t going to see a recession… and even though interest rates are still relatively high, the panic they produced in 2022 is gone.
The market is optimistic.
It has been pricing in growth, not decline.
Will it keep posting one record after another? No. As they say, nothing goes up in a straight line.
But the last several trading sessions tell you everything you need to know about where we are in the 18.6-year real estate cycle.
We’re in the final melt-up stage.
And from here, there’s plenty of room for growth.
My readers were exposed to this forecast first. But now the rest of the market is catching up.
Which tells me that it’s not too late to join my premium newsletter, The Signal, and profit from it.
We will see more peaks ahead… but you need to understand which assets and stocks are exposed to the cycle the most.
See you on the other side…
Editor, Cycles Trading with Phil Anderson
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