By Phil Anderson, Editor, Cycles Trading with Phil Anderson
Earlier this year, everybody, their financial advisor, and their taxi driver talked about a recession.
The question wasn’t if it would happen… it was whether it would be more like 2008 or more like 1929.
And given that interest rates have been going up at some of the fastest paces in decades, the housing sector was all but pronounced dead.
However, my knowledge of the 18.6-year real estate cycle suggested something completely different.
The cycle tells me that we have years of growth ahead, and housing would be one of the best investments this year.
Homebuilders: From No-Go to Favorite
Back in January, I said that “2023 is going to be a bumper year for homebuilders.”
And the first issue of The Signal, my premium publication, we recommended a homebuilder…
Everybody except for me and my team thought we were crazy.
But that investment worked out exceptionally well. In just four months, we scored a 52% gain.
On a homebuilder stock.
When mainstream financial media would suggest that you shouldn’t touch one with a 10-foot pole.
Oh well. My approach is different.
And you know what? It helped my readers get ahead of none other than Mr. Buffett.
And Now Warren Wants in
You may have heard the news…
On August 14, Financial Times reported:
Warren Buffett’s Berkshire Hathaway on Monday unveiled an $814mn investment in three US housebuilders, a bet on a sector that has benefited from dearth of supply. Berkshire disclosed it had purchased 6mn shares of DR Horton, worth about $726mn at the end of the second quarter, as well as 152,572 shares in Lennar and 11,112 shares of NVR.
Mr. Buffett is big on homebuilders now.
(Please note that this isn’t a recommendation to purchase either DR Horton, Lennar, or NVR. Check out The Signal to learn what stocks we consider having the best upside at this stage of the cycle.)
And I agree: the space has room to run until the 18.6-year cycle turns.
We Were There First
The problem is this (and here’s why we said you don’t necessarily need to track what Berkshire invests in)…
Before we bring an investment recommendation to our readers’ attention, we run it through a time-tested set of checks and tests.
We notice specific chart patterns and timing clues that present during this phase of the real estate cycle, which I call the Eleventh Hour.
It’s the time in the markets a few years before a real estate-led crash that can make or break your wealth.
I get into specifics in my briefing about this 223-year-old phenomenon right here, including which stocks you should get in now to beat Buffett.
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson
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