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Dear Readers,

As I sit here writing this to you, the US stock markets are a sea of red.

Cue the mass media falling over themselves to identify a scapegoat. Seems they are set to take aim at the AI sector for it.

You may be thinking this will be yet another newsletter where I tell you this is an example of the seismic change sweeping the world right now.

However, that isn’t my motivation today.

Instead, I’d like to take you into the future and speak about something that I think will be arguably the single biggest investment opportunity.

Not right now, but during the next full 18.6-year Real Estate Cycle!

And here is why.
Source – Financial Times

Oh wow, it’s just the largest corporate merger in history.

Are we being early here? Absolutely. You may have a long-term vision for your own investments. And you may appreciate being in early on something that you believe may be earth-shattering.

However, you may have a more conservative mind when it comes to deploying your precious investment capital, which I certainly respect.

So, let me take you into the future now and show you why it is my contention that this merger of SpaceX and xAI. Once listed, it will be a no-brainer investment that can/will change your financial life.

And I will do that by showing you one of the most important skills that learning about the land market can teach you when it comes to assessing such things.

Plus, something the media reporting on this deal has fundamentally missed.

Which instantly gives you the investment advantage.

Let’s begin.
Bigger, better, best?

Firstly, let’s look at the above article to provide some much-needed context before we go any further. Here is what it had to say about the merger.

It’s a sign of the times that the largest merger in corporate history — Elon Musk’s splicing together of rocket maker SpaceX and xAI, his AI outfit — is the union of two private companies. But there are other ways, too, that the $1.25tn tie-up epitomises the way the rise of Big Tech has turned traditional corporate finance on its head.

This merger created the largest private company on earth. And yet another classic set-up for such a late stage of the current real estate cycle.

The rationale had both financial and business implications. It instantly revitalised the loss-making AI start up and the X social media tool.

But what is in it for SpaceX is for mine the true newsworthy story. Musk said the move was needed to launch data centres into space, build factories on the moon, and colonise Mars.

Supporters have praised the tie-up as further evidence of his genius, taking advantage of his reusable rockets and Starlink network of satellites, combined with the data from X and models from xAI.

His critics see it as the latest example of financial engineering, using his personal brand and SpaceX to prop up xAI as it burns through $1bn of cash a month.

If you ask me, I think there’s a lot of truth in both arguments. What you really want to know is if the whole is greater than the sum of its parts.

And to find the answer to that, you need to think of these words: space, data centres, and solar power.
An IPO visible from space

The air really started to come out of the AI bubble in mid-2025, when investors realised just how far away any of the AI companies they had put money into were from making a profit. Then the announcement of just how much capex would be needed to build out the data centres and power them to make the dream a reality has put pressure on their share prices ever since.

Basically, without adequate power and water, the chips needed to train and run advanced AI systems, you don’t have an AI future full stop.

There is no way around these facts. Or is there?

This is where this merger suddenly makes you sit bolt upright.

Because if you had the ability to place data centres into space, where with no weather whatsoever you can have 24 hours of free solar exposure every day, where there’s no need for water to keep the computers cools as your in the coldness of space, is that not the holy grail to truly unleash the AI revolution upon the earth?

In one swoop, you have a company that dominates near earth orbit launches, owns Starlink satellite constellations, and now has their own in-house AI proprietary software that now has unlimited energy to train.

If that’s not enough to tempt you to mark down its future IPO into the S&P, then consider this. Here is the expected market capitalisation weighting of the IPO when it lists compared to the top 4 S&P listings.
Source – Financial Times

That’s an assumed 2% of the entire S&P market capitalisation; it could literally be too big to fail. Listings this big almost produce a market within a market. Overall, it just seems a total no-brainer. You buy the stock, you place it in your coffee table tray and then pull it out 10 years later and see you’ve become a millionaire.

Well, not so fast. Because in the above article there is a word of caution. And it’s this exact take that I need to break down for you next.
No, not ‘that’ rent.

So, here is how the author finished the article. And for me, it encapsulates how misunderstood one of the fundamental pillars of economics has become. The bolded text is my own.

And since regulation up there is hazy, rent non-existent and the externalities of filling space with heat-generating machinery mostly unknown, it’s the perfect playground for libertarian billionaires. Finance is going to the moon.

Now, I’m not sure just what the point of that is. Is the author suggesting that data centres generally rent out their premises? And being in space removes the need to rent? From what I can see, the hyperscalers must build purpose-built facilities themselves. And so, they are outright owned by them too.

But there is a hidden meaning here. For those of you who study the land market and track the timing of the 18.6-year Real Estate Cycle, you are aware the cycle is driven by the chase for the economic rent. The surplus generated by a productive society once the cost of production is factored in.

But instead, we allow it to be held in private hands and give banks the ability to lend against it.

So, should SpaceX’s plan come to fruition, is the author’s question actually ‘is the economic rent non-existent? The answer is a resounding NO. Sunlight, as a source of energy, is a natural and free source of economic rent. You’re taking pressure off the electricity grid here. And the coldness in space means no water usage is needed to keep these AI computer chips cool.

Two of the biggest expenses for any AI company. SpaceX first mover advantage means not only can they monopolise the space-based data centre business, but they can create a competitive advantage that no earth-bound company can possibly match.

It is the type of company that we teach our loyal members to both identify and when the set-up confirms it; eventually buying them for their investment portfolio. Companies that have a competitive moat against true competition and can capture the economic rent for its own benefit.

Believe it or not, by studying the real estate cycle and what drives it, you can spot companies that enjoy similar advantages before the mainstream do. A wonderful example of what land and space have in common.

So, make this advantage your own by becoming our latest Boom Bust Bulletin (BBB) member today. Learn the secrets of the economy by understanding what the economic rent is and how it drives the turning of the 18.6-year Real Estate Cycle. With monthly editions and weekly videos, you can put yourself and your family on the right side of history.

All for just $47USD a year. Outstanding value. Here is another benefit of knowing your history.

The absolute peak of the US land markets always brings with it the biggest IPO in history at that time. Should SpaceX list, it will shatter all previous records.

The problem is all those previous biggest ever IPOs listing right when the land markets peak then turn down have proved a bad omen for early investors. It’s a sign for investors to get out of the market, not pile in.

Paradoxically, the right time to get in therefore is when the news is at its worst. Say, when the land market induced recession hits bottom? Those with knowledge of the real estate cycle will know when that happens.

What an advantage!

Sign up now.
Best wishes,
Darren J Wilson
and your Property Sharemarket Economics Team

P.P.S – Find us on Twitter here and go to our Facebook page here. This content is not personal or general advice. If you are in doubt as to how to apply or even should be applying the content in this document to your own personal situation, we recommend you seek professional financial advice. Feel free to forward this email to any other person whom you think should read it.