Editor’s Note: Every week, we’re featuring expert insights from contributing editor and master forecaster Phil Anderson. Read on for Phil’s latest update as we move further into the melt-up phase of the 18.6-year real estate cycle.
The 18.6-year real estate cycle works everywhere in the world.
From the U.S. to Europe, Asia, and everywhere else… it has been driving asset values for centuries.
It’s an established and reliable pattern of market growth and contraction.
And what I’m seeing right now in the markets confirms this.
We’re in the “Eleventh Hour” stage of the cycle.
And here’s how it looks…
Records Everywhere
On Tuesday, the U.S. Bureau of Labor Statistics released its latest inflation report.
Annual inflation in February reached 3.2%, roughly in line with estimates.
And the markets took off.
The S&P 500 closed at a record high. CNBC reports that the index posted its 17th record close of the year on Tuesday, March 12.
And before skeptics suggest that most of the index’s action is due to the “Magnificent Seven,” a group of tech megacaps that includes Apple, Nvidia, and others… data says that this rally is quite broad-based.
Seven out of 11 S&P 500 sectors were positive… and all sectors are trading above their 50- and 200-day moving averages.
But it’s not only about the U.S. As I said before, the 18.6-year real estate cycle has been lifting most markets…
Global Growth
Markets have been reaching record highs not only in the U.S.
From the Financial Times:
Wall Street’s S&P 500, the tech-dominated Nasdaq Composite, Japan’s Nikkei 225, Germany’s Dax and France’s Cac 40, among other indices, have all hit their highest-ever levels in recent weeks, amid hopes that central banks have succeeded in taming inflation without triggering a downturn.
Goldman Sachs and UBS have upgraded their year-end forecasts for the S&P 500 this year, and this month Bank of America raised its year-end prediction to 5,400 – about 5 per cent above the index’s current levels.
Growth is everywhere… records are everywhere…
Experts call this “fear to greed” transition as a “risk reset.”
I call it “business as usual.”
It’s a natural state of affairs, as predicted by the 18.6-year cycle.
And the cycle isn’t done yet.
So expect more record highs, higher valuations, and louder voices of skeptics calling this exciting time in the market “another bubble.”
They are wrong. What is happening right now has nothing to do with bubbles.
By the end of the cycle, markets will go crazy. But they are not there yet.
Inflation is slowing down, economic growth is widespread… and the right companies in the right industries are making money hand over fist.
Regards,
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Phil Anderson
Contributing Editor, Inside Wall Street With Nomi Prins