Love him or hate him, Trump certainly knew how to get our attention. Or that of the media at least.
If you’ve read my book The Secret Life of Real Estate and Banking, then you’ll know history suggests this will only intensify as we progress into the very extreme of the real estate cycle.
I urge you to keep an eye on history here.
You may have read – or heard about – ‘the roaring 20’s’. This was the name given to an era – the 1920’s – when America’s economy grew 42%. Mass production spread new consumer goods into every household, new industries like automobiles and airlines captured the public imagination.
It was an amazing decade in the US.
It saw massive speculation in markets by a public newly wealthy from all the new jobs created.
But it happened after the worst pandemic the world had ever seen. Some 50 million people died from the flu between 1918 and 1921. It was named ‘Spanish Flu’ though it didn’t really have much to do with Spain.
It’s just that Spain had remained neutral during the First World War and was the only county that reported accurately about this new, and more deadly influenza. All the other nations tried to cover it up as ‘bad’ for the war effort.
So I thought this suggestion was somewhat interesting. It’s from an epidemiologist in the US, Dr Nicholas Christakis, a Yale University professor.
He’s predicting that once the COVID-19 pandemic is over, America will experience a similar “Roaring 2020’s”. You can read about that here.
History suggests he may be right.
The second half of the real estate cycle has always been the stronger half of the cycle. And this is what we’re coming into. Some new invention (Crypto currencies?) often sees the public go mad with speculative fever.
And you can’t lock people up forever…
Do make sure you’re ready for this. Because most people will come to this party very late. Right at the peak, if history repeats.
And it will.
And then lose the lot.
You can learn a lot of what to look out for in the next few months and years by going here.
That’s to our Boom Bust Bulletin sign up page. For the price of just a cup of coffee every month, it’ll keep you right up to date with what to look out for.
AND how to profit from what happens.
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Best wishes
Phil Anderson
and your Property Sharemarket Economics team.