Our Real Estate Market Explained: Part Three “The Bottom Line”…

THE BOTTOM LINE

This isn’t ’08. This is 2022. It’s a more dynamic, hyper-globalized world that feels like it could be breaking down. But we still have global trust that’s not eroding. Business leaders certainly won’t be flocking East after Russian’s actions in Ukraine. The US Government has told workers in the chip manufacturing sector that they must choose to live in America and work for America, or give up their rights as a citizen. Major lines are being drawn in the sand, and my guess is that people will stick around here.

The good news is there isn’t much activity with foreclosures, and so far, it doesn’t look like there’s that much danger.

If you keep an eye on all traditional markets, you start to see the game. When things break, officials step in. When the UK system broke, their central bank stepped in to save the day.

But I’ll say it now. We’re not the UK. We’re not Germany. China is going through their own version of ’08, and there’s evidence it’ll end up being worse for them long term as citizens make runs on the CCP banking system.

We’re the United States of America, the central powerhouse of the world. Where does money flow when there’s no safety left? The American dollar, value companies with long term plans and good cashflow, and housing/commodities.

That’s why we’re here.

We’ve been doing the same thing for over 200 years.

THE WHEEL KEEPS ON TURNING…

The last cycle ended June 2021. Last week, the September CPI came out .4% higher. At first, the market interpreted the report as hot, hot, hot, but that slowly turned into a neutral, even bullish reaction. The Kangaroo is back, jack! Relief may be coming.

But the higher number signifies inflation is still with us for now. I have a theory that it’s actually structural to our society as a whole, but we don’t need to get into that ’til 2024. Largely, I don’t think it matters. This isn’t specifically specific to our country. It’s global. And many economists feel like the recent Fed Rate changes are now taking hold, so there is reason to expect that Inflation will begin to show downward momentum.

I’m very excited about all the new rules they’re proposing which will help stabilize and strengthen the Western world. These measures should not only get us through this stormy period, but actually bring long-term growth back into the picture. If all things go according to plan, the US and EU will be energy independent and open for new business.

If you’re still scared, try and pry your head from the crowd. Your feelings will let you down because they’re not based in reality. They’re based in expectation.

And expectations are transitory.