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The National Association of Realtors announced its Pending Home Sales Index increased 3.4% from March to April. April’s strong showing was a 14% improvement year over year.
It was the highest level the index reached since 2006.
The Pending Home Sales Index tracks home sales in which a contract has been signed… so it’s an important leading indicator of future home sales.
The bullish economic news won’t surprise Teeka Tiwari’s Mega Trends Investing and Jump Point Trader subscribers.
Over the past year, Big “T” has been trumpeting a steady rebound in the American economy.
Here’s what he said back in May:
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We saw housing data come out today [May 26] showing the increase in first-time homebuyers up 26%. That’s not like some government Bureau of Labor statistic they can jostle. That’s real people putting their money down to buy houses… |
Big T attributes this rising tide in the housing market to a simple—yet powerful—metric that is set to turn “golden” this year.
It’s called the Golden Ratio… and it’s predicted every bear and bull market over the past century.
The Golden Ratio is what happens when the ratio of middle-aged people to young people shifts.
When the number of people in the 35-49 age group grows larger than the 20-34 age group, it triggers a secular bull market. That’s because the largest subset of the American population has entered its “prime earning years.”
And when they earn… they spend.
They buy houses, cars, vacations, and educations for their children. It’s a massive influx of cash into the economy. And the stock market marches higher because of it.
Check out the chart below. Bull markets (in green) correspond with Golden Ratio periods, and bear markets (in red) correspond with non-Golden Ratio periods. In 2015, the ratio turns “golden” again.
The housing recovery is already experiencing a tail wind from this dynamic trend. It’s set to explode higher.
As the Golden Ratio kicks in, so does the housing recovery.
Just take a look at the charts below:
But housing isn’t the only sector that will get a boost from the Golden Ratio. Big T has identified several other industries that will benefit from this mega trend.
- The pharmaceutical sector will rocket up as older Americans increase their spending on prescription drugs. Big T’s play in this space is already up 65%.
- The tail wind will push the auto industry to new heights as middle-aged Americans trade in their older cars for newer ones. Big T has recommended one company in the auto space that’s gained 38% in less than two years.
- Asset management will be a growth industry as the 35-49 age group ratchets up its retirement savings. Big T’s found an asset management company he expects to grow nearly 70% over the next 12 months.
Teeka’s made a presentation that shows you how to align your investments with the Golden Ratio. (Current MTI subscribers can review Teeka’s Golden Ratio special report right here.)