It’s easy to get distracted by the political turmoil and the swelling trade wars, but economists are picking up on signals that could severely impact your future investments.
The housing market may not be dominating the news network right now, but it should be.
So, here’s what you need to know…
These Two Indicators Are Hinting Towards a Repeat Recession
Last year, the only thing the so-called analysts could talk about was the impending “burst” of the housing bubble…
But suddenly, they went quiet and moved on to other developed news stories and predictions. For instance, the ongoing political development of Paul Manafort or the rising tensions between Iran and the U.S. – through this, the direction of the housing market has fallen under the radar.
On top of that, it’s been recently discovered that the government’s 33 years of mistakes could be costing you $23,441. Mistakes on the part of Social Security Administration employees have led to SEVERELY underpaid benefits for tens of thousands of Americans. And though the SSA has admitted their wrongdoing, I’m willing to bet they won’t be tracking you down to hand you your money back. If you’re eligible, and you take action now, you could receive a lump sum of the money owed to you within five days. There’s $23,441 at stake – don’t leave that on the table. I’ve got the full report for you right here.
Here’s why this is important though…
You see, housing has been on an upward climb since at least 2009 – but as 2018 moves into the latter end, home sales have declined in four of the past five months, however the prices continue to grow. Furthermore, the average wage has fallen following Trump’s new tax plan.
And most still can’t afford to buy a house, and those who do accrue a large amount of debt to do so.
On top of this, the Federal Reserve plans to raise its target rate two more times this year alone. These higher rates will boost short-term U.S. treasury bonds, but in the long term, investors grow wary about the economy, causing the longer-term bond rates not to follow suit.
You see, when the short-term rates are higher than long-term ones it can cause an inverted “yield curve.” The yield curve is a line that plots the interest rates. It is used as a benchmark for other debt in the market, like mortgage rates or bank-lending rates – but more so, it is used to predict changes in the economic growth.
And an inverted yield curve has foreshadowed every recession in modern history.
The economy has also been on an upward climb over the past few years. Jobless claims are down as well – and while this sounds great, when we get in the mindset that “nothing can break the economy,” it’s usually the sign that it just might.
Here’s the thing… the markets may be overheated, but it doesn’t mean we’re looking at a crash tomorrow, next month, or even next year. The truth is, if we do face another economic downturn – we’re in much better shape to deal with it.
But you can profit off this bubble before it bursts.
So, here’s a consideration…
First off, you could trade an ETF that actually correlates with the real estate industry. The perfect example is Real Estate Select Sector SPDR (XLRE).
XLRE tracks the investment results that correspond to the performance of publicly traded equity securities of companies in the Real Estate Select Sector Index.
I would look at a long call option, meaning going with options that hold expirations 60 days out or further. This will lend us a long enough time frame to find the ultimate profit.
Just be sure to talk to your financial advisor to decide what the best option is for you.
But no matter what you decide, there’s a major profit to be made in this bubble. So don’t miss out – your opportunity is waiting.
Now, folks this is a great opportunity, but if you’re fed up with the market’s relentless, unpredictable, and downright depressing performance recently, please pay close attention. Because one of America’s top trading experts just cracked the code to collecting as much as thousands of dollars each week… without touching a single, unreliable stock EVER AGAIN. An entirely new era of moneymaking has arrived…
And it’s about to change everything. Are you in or out?
Good Trading,
Tom Gentile
America’s #1 Pattern Trader
