Global Housing Bubble Bursting

Global Housing Bubble Bursting

We are currently at the beginning of the collapse of the global housing boom.
The boom came about as global centrank banks kept interest rates at essentially zero since 2008. That flood of money created bubbles in:

  • Housing
  • Crypto
  • Stocks
  • Meme stocks
  • NFTs
  • Bonds
  • And so on
    The global tightening cycle has now burst all of the bubbles above. In houseing, we are at the very beginning of the bursting. The chart above shows the price of UK housing. It is only up 4.7% year over year but down 2.3% from just last month, the highest drop since 2008! And you can see it has been dropping for 5 straight months.
    I could show a similar chart for:
  • Australia
  • Canada
  • US
  • Parts of Europe
  • China
  • Singapore
  • And so on
    The savaging of the crypto bubble is a big thing but savaging the housing market is far worse. In most countries, including the US, it is the largest industry so a drop in housing affects a vast amount of the economy.
    Yet we are only at the beginning of this bear housing cycle so the real pain has yet to begin. When it does, you may expect:
  • Much lower housing prices
  • Higher rents
  • Higher unemployment
  • Knock on effects in related industries
    So how do we make money?
    Oddly, I think you have to look at each country separately. In the US, there is probably a bit more to the downside in housing prices but how about commercial real estate. Companies like Home Deport and mortgage providers still have more to go on the downside.
    Of course, check out the Super Premium subscriptions to get my exact trades I'm doing in my account.