Ecclesiastes 7:12 For the protection of wisdom is like the protection of money, and the advantage of knowledge is that wisdom preserves the life of him who has it.
Our go to guy for all things economic, Michael Douville has two reports in this update. First, Douville recaps economic growth for the second quarter of the year. Second, Michael offers his thoughts on economic growth for the second half of the year and discusses the likelihood of continued inflation.
Better than Goldman Sach’s Forecast! The Economy is Exploding and with it comes Demand!! Watch for RISING PRICES across all asset classes except Bonds!
The G7 got together to spend money they don’t have; they are going to monetize the debt through inflation.
Manufacturing is doing very well, Industrials are doing very well, IT is doing very well, Construction is doing very well, and Real Estate is doing incredibly well.
Money Supply is at a Historic level; a Money Supply spike of $Trillion and Trillions of dollars looking for a place to get a return on investment! The Money Supply is getting used and and there is the beginning of Monetary Inflation. Money supply is being used as shown by a GDP that should print over 10% which will cause money to be used and Inflation begin.
Global Inflation! It is Global in Nature! You need to protect your purchasing power and a single family home is the greatest Inflation Hedge the average person can have! In the great markets of Florida, Texas, and Arizona are great places to invest. In Arizona, home prices are going up 3% a month. Transactions should start to slow; just a return to Normal! However, prices do appear to continue rising. Go buy a house, help your kids, your grandkids, and if you are a Baby Boomer, go buy just 2 rentals and it will change your life.
Click below for Michael’s Q2 Review
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It looks like the Economy is starting to slowdown just a bit. It has been on a Historic, unsustainable tear for months. The pace is unsustainable.
The ISM and Markit Indexes are dropping to a more normal level. The 2nd Quarter will not reach double digit, but 8.5 to 8.5% GDP is incredible and it is slowing to NORMAL.
There is still a backlog of business orders which means Manufacturing, Industrials, IT, Finance, Constructions and Real Estate is doing incredibly well; just slowing to Normal.
However, Inflation appears to be continuing it’s acceleration. It may be: “Transitory Hyper-Inflation”. Maybe for a 4 year period.
You must own Real Estate to protect your purchasing power and to participate in the rise of real assets.
