The 18.6-year real estate cycle goes through stages.
The one we are in now is called the “Eleventh Hour.” It’s one of the most exciting and potentially lucrative ones.
Markets go into overdrive at this stage… Most assets – from real estate to stocks, bonds, and commodities – surge.
And I have just received confirmation that this stage of the cycle is proceeding just as I expected.
My Prediction Comes True
Earlier, I wrote that when the 18.6-year real estate cycle enters the “Eleventh Hour” stage, one particular thing happens…
Back in November 2023, I said:
[A]s markets become more optimistic, the final stage of the cycle, the one I call the “Eleventh Hour,” will accelerate.
Optimistic predictions will make investors willing to put their capital back into stocks… interest rate cuts will accelerate that trend…
Yes, markets will continue going up.
And we have started seeing this acceleration pattern play out.
While everybody looks at the Fed for guidance, some central banks across the world have started cutting interest rates already. To me, it’s a sure sign that the 18.6-year real estate cycle is about to accelerate.
Sweden Did It First
Most of the time, the U.S. is a bellwether of what’s about to happen in the rest of the world.
But not always. This time, you need to pay attention to what is going on abroad to get a clear picture of where we are and what’s next.
Among the world’s richest economies, Switzerland and now Sweden have seen their central banks cut their interest rates.
From the Financial Times:
The [Swedish] Riksbank reduced its main interest rate by 0.25 percentage points to 3.75 per cent on Wednesday, the first time it has loosened policy ahead of the U.S. Federal Reserve this century. “We are convinced enough that inflation has come down, and has come down in a sustainable way,” Erik Thedéen, the Riksbank’s governor, told the Financial Times.
It’s on. Some of the world’s most advanced economies are taking a path to easier financial conditions. The U.S. will join them sooner or later.
But to me, even right now, this is proof of where the world is headed next.
Lower inflation, easier money, asset appreciation… in other words, the “Eleventh Hour” of the 18.6-year real estate cycle.
To understand where the world is going, you need to look at what’s going on in the world. Sometimes, you get clues from countries that aren’t on every investor’s radar.
And that’s a good thing. My readers and I are used to the idea that the 18.6-year cycle drives the world’s economy and markets.
Right now, it’s driving them toward more growth.
Regards,
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Phil Anderson
Contributing Editor, Inside Wall Street with Nomi Prins