A few days ago, in these very pages, I made mention of a few dates regarding how the U.S. government is doing exactly as I expect at this stage in the cycle… spending lavishly.
I said:
Take 2003… the U.S. government poured billions into Iraq after 9/11. This 2007 article from The Guardian lays out the facts.
In 1963, the U.S. government spent so much money on the Vietnam war, the U.S. had to be pulled off the gold standard.
1943, the U.S. government spent lavishly on war debts…
In case you missed it, please find that article here.
And note that I included the 18.6-year real estate cycle property clock. It’s a very important tool when it comes to tracking the cycle yourself.
You must become familiar with it if you want to make your fortune in stocks and property over the next few years.
However, I suggest that you take the concept even further than that.
Start using these time counts to go backward through history.
When you do, take another look at those historical events through the lens of the real estate cycle.
Trust me, once you do, you’ll never look at history in the same light again.
Today, I want to show you why.
The Pen Is Mightier Than the Sword
I can only speak for myself, but when I see the news today about the high oil price and ongoing global protests about the war in the Middle East, I always seem to think back to this time.
Source – New York Times
Note the date… March 20th, 2003.
A long-time reader will have looked at the date of the 2003 article and smiled. It’s an important seasonal date (my Signal subscribers know why)…
This was 20 years ago. I can recall the global protests against this war, the doom and gloom that still held the majority of the U.S. in its grasp after the recent U.S. tech wreck and September 11 attacks. Oh, and the price of oil, too.
Much like today, no? Well, you may think it’s just a coincidence these things happened this way.
Let me take you back further, to 1983… granted, you may not recall this, but it was a big deal at the time.
Source – Washington Institute
The above headline includes a snip of the accompanying photo of the then U.S. First Lady Nancy Reagan walking past the coffins of those U.S. marines killed that day. Note the date: October 23.
This was 40 years ago. It involved Lebanon, Hezbollah, and Iran. It culminated eventually with the U.S. attack on Libya in 1986.
Go back just over 60 years ago, to October 16, 1962 and you have this:
Source – History Channel
One of the most historic tipping points of the 20th century. However, can you “really” tell me now that this is all simply a coincidence?
Here’s the fact: we have all been here before.
And in each instance, the 18.6-year real estate cycle continued to turn, despite these macro events.
This is why I stress how important placing these seemingly random (hint: they’re not) events in the correct context is critical to ensuring you don’t do anything emotional and end up damaging your financial future.
2003 was, in fact, the exact same time as now in the previous cycle. What happened to stock and land markets between 2003 and 2008?
They Kept Rising… And Will Again
I’ll show you…
Now, 1983 was earlier in that particular cycle compared to now, but again, trace what occurred to stock and land markets from 1983 to 1990.
Did 1962/63 interrupt that particular real estate cycle? It did not. As the crisis got worse, markets made higher lows over time.
This was a bullish signal.
And then they kept rising.
Folks, we all thought World War III wasn’t far off in each instance. There was fear, anxiety, negativity, and hysteria all around.
But markets… kept… climbing.
So ask yourself, what do you think markets will do now?
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson
P.S. The current cycle has several years before we see a stock market top… and a collapse. History has shown this is the best time to accelerate your wealth.
Check out how I’m doing this for readers of The Signal.
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