Summary
Welcome to edition 5 of your Boom Bust Bulletin. Last months edition was, for mine, the most important one yet. The Law of economic rent, what role it plays in generating and sustaining the real estate cycle, and most importantly why its rarely discussed in public is so crucial to our understanding of exactly why the cycle repeats. You simply must ensure you have a firm grasp on this con…
Key Claims
- 11 © Property Share Market Economics Source – Optuma The Australian SPI200 index next (futures market). Still below the pre-Feb 20th high of 2020, we see two distinct sideways patterns. Of interest is the current period of accumulation is occurring above previous 2020 highs. Indicative of the volatility the mid-cycle recession brings to markets. We watch to see what develops, right now the market is range bound. Lastly, let’s look at the United Kingdom via the FTSE index. Source – Optuma — confidence: medium
- 15 © Property Share Market Economics Source – Optuma TIOSpot measures the spot-price that Chinese iron ore importers pay. Not much to say. I have drawn two lines which show the repeated range. A third leg up though appears in some doubt currently. And this is the best way to show now how to find the strongest shares within the strongest sector. And when I think of China and iron ore, one of the first names that pops in my head is Rio Tinto. Source – Optuma — confidence: medium
Notable Quotes
“Last months edition was, for mine, the most important one yet.”
“The Law of economic rent, what role it plays in generating and sustaining the real estate cycle, and most importantly why its rarely discussed in public is so crucial to our understanding of exactly why the cycle repeats.”
“You simply must ensure you have a firm grasp on this concept.”
“The subject is so important we have split it into two separate parts.”