Government to the “Rescue”

[Cycles Trading With Phil Anderson]( Welcome to Cycles Trading with me, Phil Anderson. My aim with this three-day-per-week e-letter is to introduce you to the most powerful knowledge for building wealth. And that’s the 18.6-year real estate cycle and its key relationship to stocks. Every 18.6 years, property, economy, and stock markets move through a repeating series of peaks and troughs – like clockwork. And the market has followed this cycle for over 200 years. Using this knowledge, I’ve been able to forecast every major market move over my 34-year career. If this is your first time tuning in, catch up on my[background]( how I [predict the markets]( and how I’ll help you avoid [false alarms]( from the mainstream media. Government to the “Rescue” By Phil Anderson, Editor, Cycles Trading with Phil Anderson When will they start cutting interest rates? Is it going to be next year? In 2025? [Chart]( Right now, markets anticipate that the Fed will lower its key rates by the end of 2024. But while every expert is fixated on the Fed, I’m reminded again that you need to look elsewhere to understand what’s coming according to the 18.6-year real estate cycle. Right now, you need to be looking at Canada. Recommended Link [The #1 Crypto Trade of 2024?]( [image]( After picking the #1 crypto six years in a row and giving his readers 27 chances to make 1,000% or more… Teeka Tiwari now found [this new $100 trillion crypto opportunity]( that he believes will reshape all financial markets… Giving you a shot at generational wealth. [Click here to see the details.]( -- Canada’s Liberal Government Kickstarted Monetary Easing Higher interest rates lead to “tighter” financial conditions. Put simply, credit gets more expensive, so there’s less demand for it. “Easy” conditions mean just that: getting access to funds is easier. Canada’s government has just announced a massive move towards monetary easing. It proposes to remove one hoop that Canadians needed to jump through to renew their mortgages. Before, if you wanted to renew your mortgage and you decided to shop around for better interest rates, you would need to pass the “stress test.” The idea here is that you have to be able to afford your mortgage at a higher interest rate. For example, if you’re about to renew your mortgage at 4%, you need to have enough income to pay a 6% mortgage. Those extra two percentage points are a “cushion” to make sure that if interest rates go up, you can continue paying off your debt. But not anymore. And you can understand why. Homeowners who have been renewing their loans at higher interest rates needed to pass a stress test at a level that was too high. Right now, a five-year variable rate in British Columbia is about 5.9%. Which means that homeowners would need to be able to handle a 7.9% interest rate. That’s too “tight.” With inflation still high and incomes stagnating, many just can’t afford to renew. Government to the “Rescue” The Canadian government understands how important the nation’s housing market is. And how crazy expensive new mortgages are. So they did what most governments are best at: try to win votes. “Our goal is to help Canadians through an incredibly challenging time by making sure Canadians have the support they need to afford their homes when renewing at a time of higher interest rates,” [Canada’s Finance Minister Chrystia] Freeland said in the House of Commons Tuesday. One of the proposals would see homeowners with an insured mortgage up for renewal not have to requalify at the minimum qualifying rate – colloquially called the stress test – if they’re switching lenders at the end of their term. If mortgages are easier to get, that’s monetary easing. And it will push the 18.6-year real estate cycle forward. Just as I expected, financial conditions are about to become less tight, which will push asset prices, from homes to stocks, upward. With elections in the States coming, I won’t be surprised to see the government “address” inflation and home affordability, too. Maybe in a different way, but to the same end. Easier credit, more liquidity in the system, higher home prices… and the cycle continues. Regards, [signature] Phil Anderson Editor, Cycles Trading with Phil Anderson --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Cycles Trading Feedback). IN CASE YOU MISSED IT… [“You will need at least $100 of this asset,” Dr. Nomi Prins (Hint: It’s NOT gold)]( $100 is all you need… Former Goldman Sachs managing director Dr. Nomi Prins has identified an investment she’s calling ‘the world’s hardest asset’ – and she’s recommending it to friends, family, and followers. She’s talked about it on podcasts… live TV… and in her newest, bestselling book, Permanent Distortion. Dr. Prins says: “This asset has nothing to do with gold or silver, but it has many of the same features to protect your wealth – and preserve your privacy.” As the turbulence in our world grows worse and worse… [Click here now to see what Nomi is recommending before it’s too late.]( [image]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-681-1765, Mon–Fri, 9am–7pm ET, or email us [here](mailto:memberservices@rogueeconomics.com). © 2023 Rogue Economics. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Rogue Economics. [Privacy Policy]( | [Terms of Use](