The Next Housing Boom Won’t Be Built On Cheap Money - These Stocks Could Win

I always sound extremely dramatic when I say stuff like this, but I am convinced that the old macroeconomic playbooks are officially dead. For example, for the past year, mainstream financial media and countless investment writers and analysts have been obsessively debating the "soft landing" versus a "no landing" scenario.

And, to be honest, I'm seeing a lot of fear-mongering about stagflation and nonsense like that.

There are two reasons for that:

• People have no idea what they are talking about.

• Fear-mongering pays well in views.

While I have often written that inflation is rising and very sticky (that thesis remains undefeated), I have also said that there's no stagnation. Although we have been through a number of rolling recessions in recent years (think of transportation, housing, and low-end consumer spending), the economy, in general, remained solid.

And leading indicators tell us that growth is broadening.

However, that's not why I'm bringing this up.

As I have mentioned in prior articles, the Trump administration has abandoned legacy models in favor of a massive, aggressive target: double-digit nominal growth, aiming as high as 15%. I am not saying that 15% nominal GDP growth will be normal or lasting. My point was (and still is) that they have the goal to truly "run it hot."

The important thing here is that one absolutely cannot engineer that kind of GDP expansion (or anything close to that), nor can we rescue a heavily pressured consumer base, without kickstarting the U.S. housing engine. That's where it all comes together, as it's the single largest domino on the board, and the transmission mechanism for the broader U.S. economy. This is because of the importance of housing in society and the high economic multiplier (building a single house provides countless people with work and even more companies with some form of cash flow).

Washington knows this, and they are preparing to force a housing boom. But this cycle will not look like the debt-fueled frenzy of 2020. To capitalize on it, we have to look past the obvious and understand the structural mechanics of what I call the "Scarcity Pivot."

In this article, I’ll show you how the macro landscape is shifting and the actionable ecosystem of equities poised to do well as the next real estate cycle begins to turn in our favor.

So, let's get to it!