Is This A Housing Bubble?

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From The Desk Of Cody Sperber:

Ready for another awesome work week?

I know I’m raring to go.

Over the weekend I was speaking with a friend who knows things…

The first thing he said as we sat down for drinks and business talk was

“It’s beginning to feel a lot like 2008.” 

I asked what he meant and he explained that it feels like we’re in a housing bubble right now.

And it’s not just the US.

You see right now according to no less an authority than Bloomberg ranks New Zealand, Canada and Sweden as the most bubbly real estate markets worldwide using 5 factors including price to rent, price to income and house price growth. 

And yes the US and UK are right behind making up the top 5.

According to top economist Niraj Shah “A cocktail of ingredients is sending house prices to unprecedented levels worldwide, record low interest rates, unparalleled fiscal stimulus, lockdown savings ready to be used as deposits, limited housing stock, and expectations of a robust recovery in the global economy are all contributing.”

And it’s NOT just the housing market. 

In the stock market we now have the lowest amount of short activity or stock traders betting against stock prices going up since 2007. 

That means even the institutional investors, hedge funds and super smart quants are ALL betting on the stock market continuing to go up. 

In the longest bull market in US stock history… 

Which goes against all historical precedent. 

History tells us every 20-30 years we have a stock crash.

There was Black Monday in 1987.

Then the Dot Com crash in 2000.

And then the 2008 crash.

All within the last 30 years. 

And to top it all off US dollars are at a 1 yr low

I’m not trying to scare you, but if you’re JUST paying attention to the housing market bubble, you might not be paying enough attention.

Remember this all came from a person who KNOWS things… 

I’ll talk to you soon about what you can do to protect yourself, but for now you need to understand that it’s not just housing that’s going crazy right now.

It’s EVERYTHING.

From The Training Vault:

Did you know I wrote a book ? 

It’s true! 

It’s called  “How To Flip Houses With Little Or No Money?” 

And it’s all about the mating habits of dinosaurs… 

Just kidding.

It’s all about how to find and flip houses when you don’t have a ton of CA$H.

In the book I’ll show you:

  • How To Get Started Without Needing a License, Much Money, or Experience
  • 7 Techniques For Finding and Funding the Best Deals 
  • The #1 Secret to Being Successful in Real Estate Investing
  • And much much more.

Get it for free here. 

Just another perk of being a member of the Clever Investor Newsletter. 

Membership has its privileges.  

Recommended Reading: 

This week our recommended reading is “Pre-Suasion” the follow up to the classic persuasion book “Influence” which mapped out influence tactics that are now regarded as commonplace marketing ideas such as social proof, liking and reciprocity. 

In the followup to “Influence” Cialdini a professor here in Arizona at ASU focuses on influencing by capturing and channeling attention. 

As we have shifted to a more “attention based economy” it has led Cialdini to shift his approach from trying to influence what people think to trying to instead direct their attention to influence what they think about.

It’s a subtle but VERY important distinction for understanding this book. 

Pre-suasion works on two simple but INCREDIBLY powerful psychological tools:

  1. Anchoring. Anchoring is a human bias to give more weight to the first piece of information we receive. For example in the book Cialdini shares a story about a salesman who when asked about price would always answer “Well it’s not a million dollars.” That million dollar number would anchor the person he was talking to, to a much higher number than the price making price concerns less of an issue. 
  2. Priming. Priming is another bias which prepares or “primes” people to be influenced. This is often called “framing” or “frame control” in other persuasion books. The point is that context matters for influence. For example, a recent field experiment found that only 20% of men would agree to help a woman after having been asked for directions to Martin Street, but 36.7% agreed to help after having been asked for directions to Valentine Street. The men had been primed with romantic associations, and behaved more chivalrously. 

There’s a bunch of other great examples of pre-suasion in the book that will help you to set up the proper conditions to influence anyone.

Check out “Pre-Suasion” by Robert Cialdini anywhere books are sold. 

Student Success Story: 

Today’s student success story comes to us from Dan and Alysa in Michigan who recently closed a couple of big deals.

They said 

“Hey Clever Family, my name is Dan and I’m Alysa and we have a couple of deals we want to share with you. 

The first one we got under contract for $91,000 and sold for $102,000 about an hour after I put it on craigslist. 

We sold it within the first week of putting it on the market. 

And that was our very first deal.

Another one is a house we got under contract for $111,000 had a buyer for 116,500 but in order to make it happen we had to pay some of the closing costs. 

But we still came away with a $4,333 profit. 

We’re so grateful that we’re able to do this but we also want to recognize the Clever Family, Cody and all his associates who are always there to help us.

Lastly we want to encourage you because Alysa and I have had some times where we wondered if this was going to work but if you stay with it and work hard and do what you’re told, good things are going to happen. 

Stay strong and don’t give up.

Happy Selling, Alysa and Dan” 

It’s always great to hear about investors getting deals done, especially in this market.

That’s gonna wrap it up for this week.

Take care and comb your hair.


Cody Sperber and The Clever Team. 

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