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The Viagra Cycle in FloridaBy
Tuesday, April 8, 2014
"I call the current expansion the Viagra Cycle," says Carlos Rosso. "We just want it to last a little longer."
Carlos builds condos in Florida – Miami to be precise. He has 2,000 condos in the works.
In the real estate bust, Miami condo prices plunged 60%. Today, condo prices are "already back near peak levels in Miami's most desirable areas," according to Rosso.
That is an astonishing move – a 100% gain in prices – as anything down 50% has to go up by 100% to get back to where it was.
Real estate in Miami in particular and Florida in general, is booming.
If you're a longtime reader of mine, you know that I've been writing about buying Florida real estate since the bottom. I don't know of many analysts that were more optimistic on Florida real estate than me.
I am putting my money where my mouth is as well...
Even with the big moves higher, I am still buying right now. Right now, I have more of my financial assets in Florida real estate deals than I do in stocks. (As you know, I like stocks now.)
Why am I so optimistic about Florida real estate?
There are two big reasons:
"Give me three reasons why [this boom] will continue," somebody asked Marc Sarnoff, the Miami City Commissioner. He answered "Maduro, Kirchner, and de Blasio." He was referring to the "capitalist-bashing regimes in Venezuela, Argentina, and New York," according to The Economist.
Latin Americans will continue to put money into South Florida. And wealthy New Yorkers will continue to flee de Blasio to a place that treats them better. These two things will not change.
Therefore, even with the big moves higher recently, I expect the good times will continue in Florida real estate...
Carlos, your "Viagra Cycle" is not in jeopardy...
Good investing,
Steve
Further Reading:
Read more on why Steve thinks housing is one of the best places for your money here:
Housing Is Soaring... But There's Still Plenty of Upside
"Now that house prices have soared, is it time to sell?" Can You Stand Low Interest Rates for the Next 20 Years?
"If your retirement plan is to sit and wait and hope to earn higher interest someday, you have no retirement plan. Because that day might not come..." The Best Way to Profit from the Boom AND Survive the Bust
"I'm predicting a major boom and then a bust... The question is, what investment could do well in both?" Market NotesTHIS WARNING WAS WELL-TIMED Over the past week, stocks have sold off... especially hot sectors like 3D printing. Our warning here was well-timed...
Back in January, we sounded a warning on the market's top 3D printing stock, 3D Systems (DDD). 3D printing is the printing of solid objects... rather than conventional printing. The 3D printing industry uses computers and special materials to "print" things like tools, guns, and toys. It's incredible technology.
Over the past few years, 3D printing has become one of the world's biggest stories. Big stories often generate big stock rallies. The big 3D printer maker 3D Systems climbed from $10 a share in late 2011 to $97 in early 2014... a gain of over 800%.
In our warning, we said stories like this often get far too popular with investors... and the stocks get far too expensive. Since our note, 3D Systems has dropped from $76 to $52... and its uptrend has been smashed.
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