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- What Cycle are We In, and What Works Now?
What Cycle are We In, and What Works Now?
Cycles - Understand them and surf the waves...
Todd Ballenger
June 21, 2023
“Only 3.9% of US homeowners
have less than 10% equity”
An Investing Smart Concept
What Cycle are We In, and What Works Now?
This is a simple but profound history of the typical cycles we go through with markets. The housing cycle tends to 'lead' which means if you know your economic cycle TODAY, you can also assume the housing cycle is probably one cycle ahead of it, it will enter earlier and exit earlier.
Example: If today Q2-2023, we think that the economy is in the 'Slowdown' phase, which means growth is above trend but is decelerating, then the housing cycle today is probably in the 'Contraction' phase, which means growth is below trend and decelerating.
It also means it will enter the recovery phase before the economy moves out of the contraction phase.
What works in different cycles for investing? And why would housing be early?
