4 Flashpoints Heading for U.S. Housing Market

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The world’s most valuable and misunderstood commodity…

The severe shortage of it could take a decade before the demand is met.

That commodity is … a single-family home.

And I can’t blame you if you think it’s crazy to invest in housing right now.

I get it.

Open up any small-town newspaper, you’ll see headlines about sky-high mortgage rates.

And Americans living with the impact of brutal inflation.

Some folks are also worried the time has come for another stock market crash.

And even the so-called experts can’t decide if — or when — a recession is gonna strike…

But here’s the thing.

Those headlines weren’t ripped from today’s newspapers.

They were pulled just before the original Echo Boom trade appeared in 1996…

That original Echo Boom trade — a boring trade on a boring commodity like housing delivered investors a gain of 84,146%.

1996 Echo Boom trade

(Click here for the full Echo Boom story.)

Meaning a small $1,500 investment in 1996 would be worth $1.2 million today.

Today, Echo Boom No. 2 is happening. And it could be even bigger… 

Unstoppable Flashpoints in Housing

We all know in life that things aren’t always what they appear to be. You have to sometimes look a few layers below the surface to get to the truth.

So just consider this…

What if the very forces pummeling our economy are — at the same time — creating a perfect storm?

A once-in-a-generation event.

The United States is already experiencing a shortfall of 6.5 million American homes. Specifically, single-family homes.

But it stands to get even worse. And there’s no quick fix.

I get that housing isn’t as “hot” as artificial intelligence or some crazy crypto mumbo jumbo.

But I don’t follow the money. I follow the patterns that tell me where the money is moving.

And the money is heading toward housing.

Right now, four powerful flashpoints are colliding with each other in our housing market:

Echo Boom 2024: Four powerful flashpoints are colliding with each other in our housing market

No. 1: The Financialization of Housing (F.O.H) — the supply of existing homes has plummeted by 75%:

The supply of existing homes has plummeted by 75%

Existing housing inventory fell off a cliff after the Great Recession.

But where did all the houses go?

I’m not sure a lot of Americans know this.

Private equity firms have been on a near non-stop buying spree. Snatching up every house they can.

Now, they’ve all got a stranglehold on America’s most valuable commodity.

They’re like the OPEC of housing.

And by 2030, they could own 40% of all single-family homes in the United States.

No. 2: Golden Handcuffs — Millions of Americans are economically trapped in their homes because we’ve become used to very, very low-rate mortgages.

In fact, 40% of homeowners have no mortgage whatsoever.

Rates are going to have to fall off the edge of the Grand Canyon to change a current homeowner’s mind about selling and taking on a new mortgage.

All you’ve got left is this block of Americans with ultra-high mortgages.

This is where most of the supply of existing homes will have to come from.

Which isn’t much at all — about 240 out of every 1,000 homes.

No. 3: Builder’s Blindspot — Still reeling from the Great Recession — U.S. builders failed to predict the coming housing demand.

For the last 14 years, builders have basically brought 120,000 fewer new homes to market every single month.

If you’re undersupplying the market for that long — the chickens will eventually come home to roost.

Some analysts now think it could take a decade to fix.

No. 4: The Echo Boom — A powerful and unstoppable mega trend … one that is creating massive demand for new homes.

Houses have gotten really expensive fast. Yet even with million-dollar price tags, they’re getting scooped up in the blink of an eye.

That’s because right now, there is a demographic full of people who are buying them in droves.

They’re called Echo Boomers.

The term refers to the children of baby boomers who were born specifically in the late 70s to mid-90s.

That includes a chunk of Generation X — over 65 million Americans there.

And almost all of the millennials — the biggest generation in U.S. history — over 72 million people.

There’s a famous saying that goes, “Demographics is destiny.”

It means each and every one of us is different — but the phases of our lives follow a predictable pattern.

Well, in 1996, it was Generation X essentially creating the original Echo Boom Trade.

Today — Echo Boom No. 2? The exact same thing is happening, except this time, it’s the millennials.

Millennials are also about to become the richest generation.

Their total wealth is set to grow five-fold by 2030.

They are already making more money from their jobs — and they’re going to get an extra bonus of an inheritance from their boomer parents.

The average projected inheritance is estimated to be $738,724.

All that money will fuel Echo Boom No. 2…

Follow the Money — Echo Boom 2024: The Investment of the Century

These four flashpoints are a force multiplier pattern of epic proportions.

A “force multiplier” is a military term.

You’ve got the world’s greatest military. The bravest Americans. Platoons of tanks. Squadrons of fighter jets. High-tech satellites.

And our economic muscle. All at our military’s fingertips.

Basically, their combined impact is greater than the sum of their parts.

Echo Boom 2024 is expected to create $84 trillion in new wealth by 2045.

This is, hands down, the investment of the decade. No … the century.

In 1996…

  • The S&P 500 closed the year up 22%.
  • The Dow hit 6,000 for the first time ever.
  • Stocks like Finish Line and Pacific Sunwear went up 464% and 329%, respectively.

And the first-ever Echo Boom trade surfaced and generated 84,146% returns since then.

Fast forward to today…

  • The S&P 500 is hitting all-time highs.
  • The Dow hit 40,000 for the first time ever.
  • Stocks like NVIDIA and Super Micro Computer are up 121% and 176%, respectively.

And another Echo Boom trade is rapidly developing and poised to be even bigger than the first one.

The stars are aligning once again.

But your window of opportunity is closing.

This trade doesn’t involve anything complicated like futures — or options either.

Anybody can make it.

It’s one tiny homebuilder at the forefront of it all.

The company name and ticker are waiting for you. But all my research is coming down tonight at midnight ET.

Go here to take advantage of the Echo Boom trade before it’s too late. 

Regards,

Charles Mizrahi
Founder, Alpha Investor

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