Housing: Here Comes the Crash

You’re receiving this email as part of your subscription to Andrew Zatlin’s Moneyball Daily [Unsubscribe]( [Moneyball Economics] Housing: Here Comes the Crash Friday, May 6, 2022 Stocks keep crashing — but the housing market keeps surging! But now, after a great run, the housing boom could be coming to an end. Today, I’ll explain what’s going on… Then I’ll show you how you could profit from it. [CLICK HERE TO LAUNCH VIDEO OR READ THE FULL TRANSCRIPT BELOW »»]( > ADVERTISEMENT < [PROOF] Jeff Bezos DUMPING shares of AMZN for... VLEO?! [Number]( This obscure financial document ([Click to enlarge]()... Proves that Amazon Founder Jeff Bezos is dumping BILLIONS of dollars of AMZN stock... And plowing it directly into supporting [VLEO](. [Click here now for the full story, and to see how YOU can get in, too!]( For a transcript of this video, see below. This transcript has been lightly edited for length and clarity. Housing: Here Comes the Crash What the heck is going on with the housing market? I mean, stocks keep crashing. As of this morning, the Nasdaq was down almost 25% for the year. Other markets are down even more. For example, parts of the crypto market like NFTs (NFTs are basically this generation’s Beanie Babies) are down 92%. But not housing! So far, housing’s just gone up and up and up. But now, after a great run, the housing boom could be coming to an end. So today, I’ll explain why it’s coming under pressure… And then I’ll show you how to get positioned to profit from it. Propping up the Markets The 2020 recession was unlike any other in history. Because of the government stimulus packages, many peoples’ incomes went up. In fact, people had more disposable income than ever. All this cash helped prop up the market, as people used their stimmy checks to trade stocks. In other words, all this liquidity in the markets created speculation. The thing is, this speculation created a bubble. At its recent peak, the overall market as measured by the Dow was up about 80% from its 2020 low. But with inflation raging, now the Fed’s been forced to pull out the rug from underneath us… POP POP Once the Fed started raising interest rates, bubbles started popping. That’s why the stock market was down about 5% yesterday — POP. And started the day today by dropping another 1% ­— POP POP. But now I believe another market is in similar peril… Housing Is Up 30%... But Now What? To show you what I mean, check out this chart. It shows the median sale price of a U.S. home. Housing has shot up 30% since the coronavirus! That’s a bubble. But why is this such a problem? Simple: because housing makes up about 30% of inflation! So if the Fed really wants to tame inflation, it needs to get this situation under control. Let’s look at the approach it’s taking… Too Little, Too Late? The Fed has no interest in popping the housing-market bubble. Popping a bubble creates financial pain and makes the Fed look bad. Instead, it’s trying to just cool down the market. To cool down the market, it’s doing two things: - First, it’s raising interest rates. Higher rates mean mortgages are more expensive. That translates into lower demand for housing, and it cools down the market. - Secondly, it’s slowing its purchases of mortgage-backed securities (MBS). The Fed is the single largest buyer of MBS. With lower market demand for MBS, mortgage rates will rise. And again, this lowers demand for housing and cools the market. The question is, will the Fed be successful in its efforts to avoid a bloodbath? If you ask me, housing hasn’t gone through its fair share of pain yet. To learn more about this — and to see how to play this combustible situation for profits — check out my Moneyball Pro recommendation below! 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. You should consult a professional financial advisor before ever taking a position in any securities you see herein. SECURITY HOLDING NOTICE: Although we are never compensated from any companies for coverage, you should be aware that Moneyball Economics, its authors, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication. While authors might actively transact in the securities mentioned, they will always have a net position that is consistent with the position set forth in our research reports, letters and updates. DISCLAIMERS: The work included in this communication is based on diverse sources including SEC filings, current events, interviews, corporate press releases, and information published on funding platforms, but the views we express and the conclusions we reach are our own. As such, this content may contain errors, and any investments described in this content should be made only after reviewing the filings and/or financial statements of the company, and only after consulting with your investment advisor. Actual results may differ significantly from the results described herein. Furthermore, nothing published by Moneyball Economics, Inc should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. Moneyball Economics is an independent provider of education, information and research on publicly traded companies, and as such, it accepts no direct or indirect compensation from any companies or third parties mentioned in any of our letters, reports or updates