Another colossal Trump failure will mark the peak of this real estate cycle. Find out why, and how it affects you.

No expenses were spared, as the Saudi Crown Prince Mohammed bin Salman was welcomed to Washington with marching bands, military flyover, and flag-carrying horsemen.

I mean, as a sign of the times, only Trump could pull off such hubris.

But whilst the White House viewed this visit as a new page in financial relationships and US-Saudi partnerships across the middle east, a more deeply concerning issue was running in the background.

However, it isn’t what you may be thinking at first. Certainly, the true big talking point from this meeting is the announcement that the US will sell its most advanced 5^th generation fighter, the F-35A, to the Royal Saudi air force. From the above article.

President Trump said Monday that the U.S. would sell advanced F-35 jet fighters to Saudi Arabia, announcing his decision the day before he meets at the White House with Crown Prince Mohammed bin Salman.

Trump’s willingness to sell the stealthy fighters is a clear signal that Mohammed bin Salman, Saudi Arabia’s de facto leader, has been rehabilitated in the eyes of the White House despite the kingdom’s role in the 2018 murder of journalist Jamal Khashoggi.

It’s been seven years since that scandal engulfed the Saudi Royal Prince. Unfortunately, money talks in this world, and given time that money proves too alluring to this Trump White House.

There is also some hope that the Saudis can be brought back to the table to normalise relations with Israel with such a deal.

But it’s a rare day when Trump doesn’t find a way to enrich his own wealth and that of his family with these types of deals. And so, it makes me wonder if there is more to this deal than meets the eye.

The answer appears to be that there is. This fighter sale is part of a very cunning plan to further enrich Trump and his family. In effect, the sale hides what the ‘true’ deal is.

And it’s that deal which I intend to bring to you in this week’s edition.

Because beneath the sheen of yet another property deal for the Trump organisation is a stark sign that tells you where we are in the 18.6-year real estate cycle and what’s coming next.

It would probably be appropriate to label 2025 as the year to get prepared. But only those who study this cycle would ever appreciate that. And believe it or not, this deal, just like the last 2 times in history where Trump has done it, will end up a colossal failure.

So, let’s look at yet another reason why your time to get ready is rapidly running out.

Let’s bring this back to the tracking of the real estate cycle. It’s always heartening in such cases to see a renowned property mogul actually acting like such.

Because Trump is not about to let a golden opportunity like this slip through his fingers. As reported in the Wall Street Journal on November 18:

Ah yes, that’s more like it! From the above article (bold text is my own):

The Trump Organization is planning a Trump-branded resort in the island archipelago of the Maldives, partnering with a Saudi-owned developer, and using a crypto-like funding vehicle to raise money from investors.

The Maldives project is the latest in a series of global property deals announced by the Trump Organization since the president was elected last year and combines the company’s real-estate experience with its growing interest in cryptocurrencies. 

As stated, Trump never seems to miss an opportunity to enrich himself in the nation’s highest office.

What has normally happened with such deals since he took office was that the Trump Organisation would license the name to foreign based property builders to brand their next development.

But for the Maldives resort, the company for the first time intends to “tokenize” the development of a Trump-branded project, giving investors an opportunity to buy a share of the construction of the hotel, which will be logged on a digital blockchain, the company said.

I ask you: does this not tell you exactly where are we in the real estate cycle today?

But it gets even juicier than that.

Eric Trump, the president’s son, runs the Trump Organisation, and has partnered with Dar Global (majority owned by a Saudi developer) for several real estate projects in Saudi Arabia, Qatar, Oman, and the UAE.

Not content with just that arrangement, according to a recent Coinbase interview with Eric, he has signalled his eagerness to combine his interest in cryptocurrencies with the company’s real-estate portfolio. Eric Trump said he was working on a real-estate tokenization project, and suggesting that World Liberty Financial, the Trump family’s crypto venture, could be part of it.

Go now and look up the word ‘nepotism’ in your nearest dictionary.

He said that instead of chasing financing from traditional players such as banks, the Trump Organisation could instead offer investors the opportunity to hold a fraction of a building and that those token holders could also have special rewards -such as free dinners when they visit the building.

There is a housing crisis in America today. Land there is now simply unaffordable for average working families to be able to buy. There is a lack of newly built housing because the margins involved are simply too thin for property developers.

This is a consequence of land prices being too high. Exactly as you’d expect at this late stage of the real estate cycle.

And those who own existing houses are disincentivised to either sell or move because they benefit from very low interest rates on their long-term fixed rate mortgages. To try to do something about it, the US government is stepping in with tax cuts and pressure on the supposedly independent US Federal Reserve to lower rates.

But facts are facts. And the table below is arguably the most sobering of them all.

At the end of the last fully completed 18.6-year Real Estate Cycle in the US in 2010 the median age of a homebuyer was around 39 years old.

But, 15 years on, the difference is stark. This speaks to a huge divide between generations, but it also possibly explains the target audience for this new resort. Let me explain. One of the main drivers for widespread adoption of crypto currencies is by those who feel they cannot replicate the investment and financial success of their parents.

For them, investing in crypto is their answer to this dilemma. Many sit on substantial gains and this has also driven another major trend right now – luxury living.

Trump has simply placed himself as yet another developer of luxury apartments and allowing tokenisation of them for the benefits of investors. The problem though is the pool of potential buyers is shrinking.

The true issue though is the timing of such announcements. Once again, Trump’s plans are calling in the very top of the real estate cycle. And I can prove it. Because, as stated above, he has history here.