I get this quite often when I mention the 18.6-year real estate cycle.
Particularly when it comes to investment ideas…
“Oh Phil, it’s pretty obvious all one has to do in order to prosper during a real estate cycle is invest in banks and property.”
My answer is always… yes and no.
Certainly, purchasing property (really, we are speaking about land here) at almost any time during the cycle will prove a fruitful investment.
And some banks pay very handsome dividends to their shareholders, too.
But is that really all there is to it?
For property, it largely is, but not for the stock market.
Yes, the real estate cycle couldn’t turn without the credit creation that banks provide.
And yet, there are times when holding a huge investment in the banking sector is a bad idea.
Believe it or not, banks do not outperform every other sector for the entirety of the cycle.
There are times when you absolutely should not buy them.
In fact, there are many different areas of the economy that outperform the banking sector and make for a far more lucrative use of your capital.
Charts Will Tell You What to Do
It all comes down to your timing and ability to correctly read a stock chart.
Believe it or not, a price chart will “tell” you what it wants to do next and when it wants to do it.
Well, imagine if you could overlay the knowledge of the 18.6-year real estate cycle over the stock market. Imagine what that can give you in terms of timing the economy…
Now that’s a powerful tool for your investment toolbox.
Let me give you an example of how you can use it for your own benefit…
Thanks to my knowledge of the cycle, I know that the chance of a market panic or, indeed, an economic recession happening anytime soon is slim to none.
In fact, I know the opposite is true. I know that many different and disparate parts of the U.S. economy should be experiencing increased earnings…
…or are about to report that fact.
I fully expect economic activity to not only continue to improve but also accelerate as we head toward the end of 2023.
And what’s one thing that a busy and productive economy produces in droves?
It’s Not Sexy Sector…
Believe it or not, it’s waste material. Everything from recycling to landfill, disposal, and waste management solutions becomes extremely lucrative.
Thankfully, today we are much more aware of this, and both governments and businesses are committed to dealing with these issues efficiently and ethically.
So my question to you is: have you ever considered a listed company exposed to the provision of environmental solutions to residential, commercial, industrial, and municipal customers in the United States and Canada?
Don’t laugh, this is precisely the type of on-the-margin investment idea that can prove very lucrative for early movers.
And yet, if I “did” believe the narrative from our negative, and frankly incorrect national media, then there is no way I’d even consider things to be so bullish on the ground.
After all, aren’t we headed for a recession?
But hey, you don’t even need to believe me. The stock chart will tell you the truth.
Above is a chart of a national waste and recycling company. I’ve removed the ticker symbol from this chart and called it “Company X.” But it’s a real publicly traded corporation listed in the United States.
I draw your attention to a technical pattern called a “rising wedge.” You can see it outlined in the chart above.
We just concluded our highly successful “Eleventh Hour” presentation for my service, The Signal.
As you read this, the newest members of my exclusive service now know and understand the significance of that technical pattern above.
This is the secret to finding and eventually entering stocks on the verge of a breakout well before anyone in the mainstream media has even heard of them.
Turn My Knowledge Into Your Advantage
Here’s the thing… It’s so obvious after the fact that a stock was once a great buy before it reached all-time highs and then simply kept rising.
In this case, there is no need to do anything here. I have yet to see the key signal I am looking for that tells me the price is now ready to move higher.
What is important is the ability to overlay the history of the real estate cycle and apply my skills in reading a chart to find these potential big movers right on the margins.
And as you’ve just witnessed, apply some common sense to what’s truly happening on the ground today in the U.S.
Recession? Imminent market collapse?
Stop wasting my time.
I know where the economy is, I know what my timing will be, and it’s stocks like this that will tell me in ample time whether I’m right or wrong.
What are the chances this particular stock is a lot higher at the end of the year than today?
Will you be kicking yourself if that’s true and you missed it?
What else have I uncovered on the margins?
Only one way for you to find out, really…
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson
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