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This is probably the most important forecast for Steve in 2020.

Editor's note: as the beginning of the year series, let's analyze the real estate market again.
1. The real estate market has just begun.
If you choose between gold and real estate investment, Steve will no doubt choose the latter.
To be sure, the US housing market is the focus of 2021, with record low interest rates and high demand leading to a frenzied bidding war and soaring house prices.
It all looks like a speculative frenzy, reminiscent of the housing bubble before the financial crisis. But according to Dr Steve Sjuggerud, the housing bull market is not a bubble, but the beginning of a long-term trend that is far from over.
As Steve said in a research report released on September 9th, he believes that real estate is an excellent investment today and even in the next 10 years, and if he has to, he will choose to give up all his gold investments. Regular readers may know that Steve is bullish on investment in the US real estate market.
Steve called the real estate bull market his most important forecast for the 1920s. Below, Steve will share three best ways to capture this huge trend.
If I had to choose, I would choose to give up investing in gold forever and invest in the real estate market instead.
Around 2000, gold was nearing the end of a decade-long bear market.
It is too conservative to say that no one paid attention to gold at that time.
I remember the first time I went to see the gold coin exhibition, the exhibition hall was half full, and the people who came to the exhibition were all over 60 years old.
This is not a popular investment show, just a group of boring collectors.
But for me, a younger man, it is worthwhile to look for tiresome opportunities.
As regular readers may know, "tiresome" is one of my three investment mottos, and the other two are "cheap" and "on the rise".
So I began to share the golden opportunity with my readers.
We bought some gold coins, and then the price soared by three digits. I also focused on gold stocks, including Seabridge gold (SA), which later rose 995%.
Gold and other alternative investments were the beginning of my career, and those skyrocketing stocks made me accumulate a lot of popularity. But for one thing, if I had to make a choice, I would choose to give up investing in gold forever.
Because now there is another better investment. I have personally invested a lot of money in the past 10 years, and although the market has performed well during this period, the biggest increase may only have just begun.
Below I will share an asset and analyze why its opportunities are now focused on. Finally, I will focus on this trend. You can consider three ways to invest in your portfolio-two of them with just a few mouse clicks in your brokerage account.
It is not Bitcoin or any other potential gold substitute.
Like these assets, this asset can be used as a hedge against inflation, but it means much more than that.
So in the past 10 years, I have invested almost all my investment money in this asset. To be honest, if you read my content during that time, I think you already know which asset I'm talking about.
Yes, it is real estate.
I started buying property in 2010, when we had just experienced the bursting of the real estate bubble.
I bought a vacant lot, an apartment near the beach, several apartments, and even a mile of coastal street. I also bought industrial land and some iconic real estate in my area.
I have been buying property for more than 10 years, during which time real estate prices have soared.
But even if the price goes up, we haven't missed the opportunity. Again, if I had to choose an investment now, I would choose to invest in real estate rather than gold, but that is far from enough.
The most important reason for the growth of the real estate market is the serious imbalance between supply and demand.
Strictly speaking, this is within the scope of Economics 101.
The current market situation is no longer the frenzied speculation that appeared in 2004, and people did not quit their jobs and get rich quickly by speculating in real estate. This is determined by the relationship between supply and demand.
Now there are a large number of buyers entering the market, but there are not enough houses for them to buy. This is the simple principle of supply and demand.
There are many reasons for this phenomenon.
COVID-19 is always persuasive, and the epidemic forces people across the United States to reschedule their lives, which means they have to make major changes to where they live and how they work.
In addition, millennials are becoming an indispensable part of the real estate market. Millennials are now the main buyers, according to the National Association of Realtors. And younger millennials (ages 22 to 30) are almost all first-time buyers.
Still, the "cause" is not as important as the result. The biggest result was that sales of new homes reached a 15-year high in January 2021. The following figure shows:
This is probably the most important forecast for Steve in 2020.
Although we have seen demand decline from its peak in the past few months, we can also see a double-digit increase in new home sales compared with before the 2019 epidemic. House prices have risen by nearly 30 per cent in the past four years.
At the same time, the number of homes available for sale fell sharply over the same period.
This is probably the most important forecast for Steve in 2020.
The picture above shows the number of housing listings in the United States over the past five years, and as shown in the chart, the number of listings is now far less than half of what it was in 2016.
This picture is easy to understand, and it is clear that the current real estate frenzy is not a frenzy at all, but a serious imbalance between supply and demand.
This means that the current real estate bull market is more sustainable than almost everyone knows.
2. Three ways to grasp this bull market in real estate
Homebuilders are unable to fill the supply gap overnight, which means that the current market boom is likely to continue.
Now all that's left is the big question: how do you seize this opportunity?
L consider directly buying physical real estate in the United States
The first choice is to consider buying physical real estate in the United States, but frankly, this is not for everyone, buying personal real estate is more laborious and riskier.
If you are willing to roll up your sleeves and do more work, then I think you can now consider adding physical real estate to your portfolio. I am convinced that the value of American real estate will continue to soar in the coming years, as we have seen in the past decade.
But if you prefer a simpler strategy, you can take advantage of this opportunity in two ways, both of which are invested in the stock market.
Focus on direct opportunities for real estate related companies
Invest in companies that are directly responsible for filling the gap in housing supply, including homebuilders and other companies that hold physical property.
Such companies are likely to do better in the next few years, and high demand means that homebuilders will have a lot of business, and companies that already own physical property should be able to wait for asset prices to rise, and their stock prices should rise accordingly.
This is a good choice, and now I am encouraging my readers to focus on the opportunities of these companies.
L do not ignore the indirect investment opportunities of "pick and shovel" companies
But there is another way of trading, which comes from an old saying about investment:
The people who really make money in the California gold rush are those who never spend a second panning for gold.
Instead, they open shops selling pickaxes and spades, gold panning equipment, rough jeans and boots, and so on. They sell what gold prospectors need (whether they find gold or not).
We can do something similar in the real estate market.
Consider owning "pickaxes and shovels" companies that thrive as the real estate market continues to grow. Here I am referring to companies that sell products to builders, contractors and even the DIY industry, and assist in construction through services or equipment.
These companies are crucial to maintaining a bull market in real estate, and finding the right business can be hugely profitable.
Caterpillar Inc, a heavy machinery maker, for example, has seen its share price rise by about 1500 per cent over the past 19 years. That's more than double the total gain of the S & P 500 over the same period.
Investing in these "pick and shovel" companies may become a dark horse in the real estate boom that has already begun, and in my opinion, investors who seize the right opportunities now may see yields several times over the next few years.
No matter which type of investment you prefer, the key is to start seizing the opportunity now.
Now is a good opportunity, the housing market is hot, but this is not a speculative bubble, which means that the U. S. real estate bull market will probably continue from now on.
By seizing the opportunity now, you have seized one of the bull markets in real estate history, the gold of the real estate market for decades. The bull market in real estate is my "most important forecast for the twenties of the 21st century".
Therefore, if I have to choose between gold and real estate investment, I am willing to give up gold forever.
I don't want you to blame yourself when you wake up a few years later and regret that you didn't seize the opportunity to enter the stadium. Before it's too late, I hope you can see the situation clearly and learn to profit from your hard-earned money in the best way.
Now that the time has come, don't miss this wonderful opportunity.
(the views of this article only represent the personal views of the author and do not serve as any investment advice. investment is risky and should be cautious when entering the market.)
Analyst: Steve Sjuggerud
Compilation: Samantha
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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