This "Mistake" From Biden Could Make You 20% Returns

You’re receiving this email as part of your subscription to Andrew Zatlin’s Moneyball Daily [Unsubscribe]( [Moneyball Economics] This "Mistake" From Biden Could Make You 20% Returns Tuesday, March 1, 2022 A major trend reversal is about to happen in the housing market. Wall Street hasn’t noticed it yet, but my data paints a clear picture. And if I’m right, those who take advantage of this could earn a quick return of 15% to 20%. [CLICK HERE TO LAUNCH VIDEO OR READ THE FULL TRANSCRIPT BELOW »»]( > ADVERTISEMENT < [Buy this oil stock BEFORE Russia's next attack]( URGENT: Stocks are plummeting after Russia's invasion of Ukraine. The shutdown of a major energy pipeline to Russia could create a historic shock in oil prices and send oil stocks soaring. But, do NOT buy Chevron or ExxonMobil. Instead, this small Texas oil stock could make you 100+% if you get in immediatately, before the oil crisis escalates. [Click here for the full details.]( For a transcript of this video, see below. This transcript has been lightly edited for length and clarity. This “Mistake” From Biden Could Make You 20% Returns It’s time for Moneyball Economics! I recently noticed a trend reversal in the housing market. And as I’ll explain today, those who jump on it could pick up a tidy 15% to 20% return. Here’s the situation… Rental Prices Are on the Move This profit opportunity stems from what’s happening in two areas of the real estate market: - Apartment rentals. - The home-building sector. Let’s start with apartment rentals. Here’s a chart that shows the monthly change in national rent prices over the past few years: As you can see, the national average is usually pretty stable. Over the course of a year, it moves up or down a percentage or two. Typically, rents go down during the winter. Few people move when it’s cold out, and landlords do whatever they can (including dropping the price of rent) to bring in new tenants. During Covid, though, all bets were off… Beware of False Signals As you’re probably aware, home prices shot up during the pandemic. Buying a home became too expensive for many people, so they were forced to keep renting. And knowing that their tenants were stuck, landlords jacked up the rent. Let’s take another look at our chart — specifically the arrow at the far-right: You might be saying, “Hey Zatlin, it looks like the bubble that happened in 2021 is over. Rents are flat again.” But keep in mind — rents tend to be flat or even negative during winter, so this is a false signal. In fact, I believe rents are about to go back up. And Wall Street is missing this move entirely… Renters Are Stuck Now more than ever, renters are stuck. Buying has become less and less affordable. And meanwhile, landlords are getting increasingly comfortable jacking up the rent. There are a couple of reasons for this. First, the apartment sector has consolidated. Not so long ago, about half of all apartments were owned by “mom and pop” landlords. But today, most rentals are owned by corporations. And when corporations own and consolidate a market, they start to wield price power. Second, there’s been a reduction in housing inventory. Part of that is due to Airbnb (Nasdaq: ABNB). People buy apartments and then list them as short-term rentals. Long-term renters no longer have access to the property. In New York City, for example, Airbnbs account for 2.5% of all rental units. When you’re in a major city where there’s no space to build new apartments, that is a huge chunk of the market. Bottom line: renters are stuck. But meanwhile… REITs Are Booming Real Estate Investment Trusts (REITs) that own and manage apartments are making money hand over fist right now. In some cases, their earnings have jumped 100%, 200%, even 400%. Wall Street was surprised by these numbers. But it believes the growth is already over. That’s why the stocks of these REITs haven’t moved lately. They’ve flat-lined, pulling back in sync with the market… But this is exactly where I see an opportunity for investors like us… > ADVERTISEMENT < Former CIA Advisor: "They are LYING about inflation!" Despite the circus of distractions you're hearing on the news... The lies and the misdirections... There's one former CIA and Pentagon insider who is revealing the TRUTH behind the inflation numbers in America. A story so shocking and so powerful that it could bring the Biden Administration to its knees. You might have known something strange was going on in America, but I can guarantee you weren't expecting this. [Click here to see the story the mainstream news is trying to bury.]( This Is Why Rents Will Keep Going Up I believe we’re about to see more earnings surprises from certain apartment REITs. Why? Because rents are about to go up mightily. There are two reasons for this: - The eviction moratorium just ended. For a long time, landlords couldn’t hike rents. Now they can. And there’s a lot of catching up to do. I wouldn’t be surprised to see 30% hikes. And if tenants can’t pay, they’re out the door. - Spring is headed our way. And a lot of folks will be ready to make a move. How am I so sure they’ll be renters instead of buyers? For starters, buying a house is already too expensive. And now mortgage rates are going up, which makes home ownership even more expensive. But something else is happening, too — something most folks aren’t paying attention to. And it’s going to make housing significantly less affordable... Biden Did What? I’m referring to a recent decision from the Biden administration… A policy decision that’s contributing to massive inflation. During Covid, lumber prices shot up. But they were actually on their way down — until November, when Biden doubled the tariffs on Canadian lumber imports! In case you weren’t aware, Canada supplies 50% of all the lumber in America. And this decision had huge ramifications. As you can see in the chart below, lumber prices shot back up. And as the National Association of Home Builders has reported, this is adding $19,000 to the cost of building a new home. Wall Street Is Missing the Boat — But We Don’t Have To Put everything I just told you about together — apartment consolidation, a reduction in inventory, higher interest rates, a $19,000 premium on lumber, etc. — and housing is getting more and more expensive. And renters are stuck. Earlier, I mentioned that Wall Street is missing the boat on this trend. But I’m not! Looking at the hiring trends at certain REITs, everything is headed up and to the right. For example, look at Avalon Bay (NYSE: AVB). Hiring is hot, hot, hot! And United Dominion Realty Trust (NYSE: UDR), another major apartment landlord, is hiring non-stop, too: These companies know they’ve got renters right where they want them. And they can afford to hire more people because, quite frankly, they’re about to jack up rents. If you’re a “Pro” subscriber, I gave you a specific way to play this trend on Friday. That’s how you can set yourself up for the 15% to 20% payday I mentioned earlier. So if you haven’t done so already, make that trade today. In the meantime, Zatlin out. Talk to you soon. FOR MONEYBALL PRO READERS ONLY > [LEARN MORE]( < In it to win it, [Andrew Zatlin] Andrew Zatlin Moneyball Economics Copyright 2022 © Moneyball Economics, All rights reserved. You signed up on []( Our mailing address is: Moneyball Economics 201 International Circle Suite 110 Hunt Valley, MD 21030 [Update Subscription Preferences]( | [Unsubscribe from this list]( | [Terms & Privacy]( RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. You should never invest more than you can afford to lose. Please use this research for the purpose that it's intended — as research only. 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