This stage of the 18.6-year real estate cycle is unfolding just as I predicted.
Stock markets are reaching record levels across the world… and even more conservative assets, such as gold, are soaring.
As of writing, gold is trading at $2,299.70. It soared by 12% over the past 12 months.
Other commodities have caught up to this stage of the cycle.
Coffee is up 25% over the past year… while cocoa is up about 225%.
This is exactly what I predicted. The 18.6-year real estate cycle drives not only stocks, bonds, and real estate but also other assets, such as commodities.
So, what’s next?
Forget About the Mainstream Debate
First, I urge you not to pay too much attention to what the mainstream media says about where markets are about to go next.
Just look at gold and how the narrative about it changed.
When inflation was high, gold was supposed to perform very well.
But then central banks started hiking interest rates, so the expectations changed. Yes, inflation was still high, and yes, gold has traditionally acted as a hedge against it… but high interest rates were now supposed to get in the way of gold’s performance.
Now, gold is at all-time highs… while inflation is falling. But wait, gold is performing so well because interest rates are about to go down…
If you’re confused about this logic, you’re not alone.
Most assets, including gold, are soaring because of something far less related to interest rates or the economy.
It’s All About the Cycle
The 18.6-year cycle is the fundamental (albeit invisible to an inexperienced investor) force driving these markets.
As I said, at this stage of the cycle, which I call the “Eleventh Hour,” most assets go up.
Stocks, bonds, gold… even crypto.
If it can go up, it does.
And you shouldn’t be confused about why everything moves in unison.
Shouldn’t bond values go down when stocks are up? What about currencies?
Again, I want you to have a clear view of this market. Don’t be distracted by the traditional financial media.
During the “Eleventh Hour,” markets soar.
That’s it.
And over the next one to two years, I see more growth.
It’s not the time for the cycle to turn yet.
On the opposite, I see more growth ahead and more records broken by all sorts of assets.
If the Federal Reserve or other central banks do start cutting interest rates, the cycle will accelerate further.
Easier money and more liquidity help propel the cycle to new heights.
I look forward to what’s coming… And I hope you join me on this journey.
Regards,
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Phil Anderson
Contributing Editor, Inside Wall Street with Nomi Prins