I’m going to show you today what a combination of new technology and speculative money can produce on the stock market. And why now, as economies exit the COVID induced recession, is exactly the time to be researching the opportunities.
Take fintech (financial technology): it appears nothing can stand in the way of such companies in Australia and around the world.
Previous emails to you have shown you the amazing plethora of brand-new digital products which have exploded both during and as we exited the COVID lockdowns last year and this.
The momentum is serious now; its difficult to see just how these things can stop, let alone go back to the ways of old.
This is best summed up by the amazing run all companies exposed to Buy Now Pay Later (BNPL) have had recently.
Early movers were recently joined by a wave of speculative money sending shares in this sector parabolic.
And when you see that type of action, you get results like this.
Source – Optuma
Above is a daily chart of Credit Intelligence Limited (ASX – CI1) back from early February. They are a specialised debt restructuring and personal insolvency management company. They can also arrange individual voluntary arrangements on behalf of the credit funding industry.
After months in an accumulation channel, price broke out violently early in 2021. Since then a number of inside bars confirms the easy money has been made and the market awaits future developments.
But for the Property Sharemarket Economics (PSE) team, we always relate new and innovative technology to the 18.6-year Real Estate Cycle. One way to see how the cycle is unfolding is to see what stocks break out like this.
And for now, as economies around the world slowly emerge from the previous COVID-related recessions, now is the time to identify and profit from brand new trends which developed during the COVID lockdowns, perhaps earlier.
As the stock chart shows their time to shine is now approaching.
Welcome to the future of money.
Each real estate cycle is different from the one that preceded it. Whilst the same drivers are always present the way each one plays out reflects the attitudes and behaviours of a new generation.
And the timing remains the same.
Here’s an example.
In the late 1970’s the worlds first derivative markets opened on the gold, mortgage and oil markets. Finally, from 1982 onwards, currency and index future markets also began trading.
In other words, a new previously unheard-of way to leverage debt meet an explosion of computational power to create a whole new set of derivative markets across many different assets.
Trading in them exploded in the 1980s and made a lot of people very wealthy (if they knew what they were doing).
Please note the timing: this occurred at the midpoint of the 1972-1990 real estate cycle (1982 was effectively the end of that mid-cycle recession).
And this is exactly where we find ourselves now, in the current cycle!
However, at PSE we work hard and gaze wide across a plethora of technological innovations to determine what’s different this time around.
Our research is showing a demographic change is underfoot that is merging what we traditional thought about what debt is and what money is.
BNPL is not something that could realistically exist in any other cycle but this one considering the technological breakthroughs required to bring it to mass adoption.
And here is why.
It’s based on trust.
When I went for loans, be they business, mortgage or personal, I generally needed to have some form of relationship with my bank or lender to get it done.
And they needed to trust me that I’m good for what I’m borrowing from them, to eventually pay it back.
Millennials today though not only don’t have this, but they actively avoid it.
They don’t accept the idea of interest payments every month on a credit card. They certainly don’t abide sitting for an hour or more in a bank branch trying to convince someone there the merits of why they want a loan.
This is the primary reason why BNPL has gone parabolic so quickly.
Hence it makes sense that, as these clients of BNPL grow up and wish to settle and start a family, they will look for something similar when it comes to upgrading their car via a loan or even buy their first house.
You no longer have to touch it, to own it.
So, what we are seeing happen now, are people using debt, as a form of money provided by say Afterpay, with no need or desire to touch it.
Think about it, do you need access to an ATM to use Afterpay or ZipCo?
Users of BNPL have no need to ever touch physical dollars again. It’s all digital, transferring “zeros” and “one” from one balance sheet to another.
So, if this is now the new normal, what else do you no longer need to hold in your hands to own it?
Its no wonder this cohort of people have no problems holding crypto currencies or digital collectables like Top Shot “moments” (which I wrote about recently).
And again, it comes down to trust.
They trust the blockchain as irrefutable proof of unique ownership, allowing seamless and transparent transfer between two willing parties. And they never “hold” a bitcoin, and they don’t need nor want to.
This is the ‘new money’ that has recently come into the market, and it’s this demographic that has used social media to co-ordinate their investing to push up the share price of redundant companies like GameStop’s to incredible highs.
Doesn’t it make so much sense to not only understand this dynamic, but begin to get ahead of this trend to identity future opportunities?
Of course! Trust me, the level of innovation is set to increase substantially.
Thanks to my research of the history of the real estate cycle, I’m very aware that this helps identify where I am within the cycle.
Its time you got ahead of the curve too.
Are you interested in this area of technology, or even technology in general?
Do you have a trading mindset, or do you aspire to become an active investor, trading alongside the real estate cycle as it progresses?
I can recommend something today that can help you achieve that.
It’s called the Boom Bust Bulletin.
As a member of the Boom Bust Bulletin. You will receive the history of the 18.6-year Real Estate Cycle, why it repeats, and how you can take full advantage for yourself and your family.
Upcoming editions will explore the relentless rise of technologies. We will explore together why new forms of credit are critical components of a thriving economy, and then how to spot the danger signs ahead of time.
With the same timing, same opportunities, and same risks as each other.
You will find the information this bulletin provides you nowhere else.
It is 100% exclusive to Property Sharemarket Economics.
And it will cost you less than a single coffee per month.
Incredible value.
Join us on this journey.
Best wishes
Darren J Wilson
and your Property Sharemarket Economics Team
P.S – Go to our Facebook Page and follow us for right up to date information on the 18.6-year Real Estate Cycle.