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Can You Spot A Real Estate Bubble?

Joe Samuel

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real estate stocks

You don’t need a great memory to flash back to the last real estate bubble. It was only 10 years ago, a breakdown in the United States housing market and several others across the globe that eventually sent the world into the worst financial crisis since the Great Depression.

If you can recall or if this is a history lesson for the younger crowd, the S&P 500 lost half of its value, the unemployment rate doubled, several investment banks were forced to dissolve or merge in order to survive, and millions of Americans were foreclosed on and lost their homes. Millions of others simply abandoned them as the homes were underwater or worth less than what they owed on their mortgages.

Homebuyers and others, especially in areas with limited housing supply like Silicon Valley, San Francisco, and Los Angeles, may be nervous about the next real estate bubble as home prices are rising. Though there’s no confirmed way to spot a real estate bubble and experts won’t agree on whether one can be identified or not, there are a number of signs that homebuyers and shoppers can follow in order to determine the likelihood of a bubble. Those indicators include:

Interest rates since low rates tend to fuel bubbles.

Home price indexes, a measurement of housing prices for single-family homes in a given location. These offer the easiest way to follow the rise and fall of home prices.

Price-to-rent ratio, which is the ratio of the price of home to the annual rent that it would generate and a measure of affordability of renting versus buying. Lower ratios indicate that buying is cheaper, while higher ratios would signify that renting is the better deal. Price-to-rent ratios tend to rise during a bubble as speculative interest in homebuying lifts home prices.

Determine to what extent rising prices are being driven by speculators rather than residents as housing bubbles tends to be driven by speculators, or investors who are buying homes to turn a quick profit, rather than live in them.

But What is a real estate bubble?

A bubble is simply a sudden increase in the price of an asset class, such as housing, due to increased demand or speculation. Think about the way bitcoin exploded in 2017 and then immediately imploded during the beginning of 2018.

The term is often used when the rise in prices is divorced from the underlying value of the asset and followed by a rapid decline. The bubble is so named for its appearance on a chart as the asset price suddenly rises and then falls, creating the rounded shape of a bubble. A bubble often emerges from supply and demand dynamics becoming imbalanced. When demand for housing exceeds supply, which most often happens in cities with geographic boundaries like San Francisco, Seattle, or New York that have booming economies, prices tend to escalate.

Speculators and other investors may seize on the opportunity, buying housing in order to turn a profit rather than live in the home — a process sometimes called flipping. Eventually, the imbalance tends to correct itself and higher prices drive down demand or supply catches up with the higher level of demand through new construction. Investors don’t generally know when they’re in a bubble or how long it will last, though there are usually critics who recognize it as such.

International Monetary Fund 

According to the International Monetary Fund, real estate bubbles are less frequent than equity, or the stock market, bubbles. Real estate bubbles occur every 13 years on average but last twice as long as the 2.5 years that stock market bubbles last. Real estate bubbles also lead to double the loss in output of the 4% decline in gross domestic product, or GDP, caused by equity bubbles. GDP is defined as the total value of all the goods and services produced by a country, or a similar entity, in one year.

In today’s market, when investors refer to a real estate bubble, they are generally talking about the housing market as that was the most significant driver of the last real estate bubble as well as the financial crisis and remains the biggest concern for homebuyers today.

The impact of the housing bubble’s bursting and the subsequent financial crisis was vast. Lehman Brothers, the investment bank, went under, and several other banks, including Merrill Lynch and Wachovia, had to be acquired by other banks, in their case Bank of America and Wells Fargo, respectively, with the oversight of the federal government. All told, dozens of banks and financial institutions around the globe went bankrupt or had to be acquired. In 2008, there were more than 3.1 million home foreclosures, more than triple the number in 2006, and home prices fell about 30% from their peak in 2006 to their trough in early 2012.

Will we see another bubble burst?

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Biotechnology Could Cure It All

Daniel Chase

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Nearly two-thousand years ago, give or take several minutes, Hippocrates taught that human existence was centered around the four elements — earth, water, fire, and air — which in the human body was represented by the four basic humors: blood, phlegm, black bile, yellow bile. Hippocrates explained that each humor was located in a specific organ of the human body and each related to its own personality type — sanguine, phlegmatic, melancholic, and choleric.

‘Therefore, if someone was sick, Hippocrates taught that this indicated an imbalance in one of the four humors, so treatment included removing a given amount of the imbalanced humor through purging, bloodletting, etc. For those unfamiliar with bloodletting, it is the removal of some a patient’s blood which, in modern times, seems completely feasible, but back then this involved draining blood out of a person. 

Suffice to say that the medical field has moved forward since 460 BC, and recently, these advancements have occurred in the biotechnology industry. Though biotech is a relatively new field, it possesses great potential for the future of medicine. One of the more recent breakthroughs in biotech stems from something called pharmacogenomics, or the study of how genetics affect a person’s response to drugs. This new field combines the science of developing drug treatments and research conducted on human genetics and their functions. 

Multi-Trillion Dollar Industry Providing Massive Opportunity in 2019 & Beyond

According to the U.S. National Library of Medicine, most drugs currently available on the market are branded as “one size fits all,”meaning that this specific treatment was created to cure a certain ailment for anyone who takes it. However, as scientists in the pharmacogenomics field are discovering, not everyone reacts the same to certain drugs.

For example, if two individuals are having an allergic reaction and both ingest an anti-histamine, it’s possible that it will help one person feel better, while causing adverse side-effects to the other person. By studying a person’s genetic coding, medical experts are better able to predict how a medication will effect a particular person. 

Ironically enough, as new technologies and inventive approaches to curing diseases come to light, medical researchers are discovering new diseases that seek to test all the progress we’ve made thus far. The practices of medicine have taken massive strides over the past few generations through the pioneering of biotechnology research and other incredible advancements, but regardless of these steps forward, it is up to companies in the healthcare industry to responsibly tend to the needs of their patients. 

Premier Health Group Inc. (OTC: PHGRF) / (CSE: PHGI) / (6PH.F) is a Canadian publicly traded company strategically poised to take advantage of lucrative business opportunities in the global healthcare industry. The Company is working to develop innovative healthcare approaches that combine human skill-based expertise with emerging technologies. What sets the Company apart from others in the field is that Premier is focused on developing their healthcare platform with a patient centric focus, looking to restore power back to the patients. For far too long, patients have been at the mercy of pharmaceutical companies who, by virtue of their capital, have maintained a chokehold on the price of drugs that patients need to stay healthy. 

In addition to rising treatments costs, as the global population increases, there are less primary physicians available for consumers looking to be cured. Through the use of Premier Health Group Inc. (OTC: PHGRF) / (CSE: PHGI) / (6PH.F) HealthVue app, patient can see their physician, access their charts & lab results, chat securely with clinical staff, reorder prescriptions and share remote health monitoring data with their doctor – all at their fingertips. The HealthVue app utilizes a virtual care platform designed to be easy to use and to improve a patient’s access to primary care. 

In addition these advanced healthcare solutions, the Company shared, in their most recent corporate update, that they plan on utilizing artificial intelligence to assist in virtually triaging the needs of their patients. Using their Healthvue app, the patient will answer a series of questions which will be relayed to the physician, along with a differential on possible diagnoses. This information will be pre-populated to the physicians charting system and will provide key patient information prior to the scheduled virtual visit, saving them a considerable amount of time and allowing more time for patient interaction. 

Pursuant to an agreement between MIDAM VENTURES, LLC and Premier Health Group Inc. we were hired for a period from 10/1/2018 – 4/1/2019 to publicly disseminate information about Premier Health Group Inc. including on the Website and other media including Facebook and Twitter. We were paid $300,000 ( CASH) for & were paid “500,000” shares of restricted common shares (as of 1/2/2019). We own zero shares of Premier Health Group Inc., which we purchased in the open market. Once the (6) Six-month restriction is complete on 4/1/2019 we plan to sell the “500,000” shares of Premier Health Group Inc. that we hold currently in restricted form during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of Premier Health Group Inc. in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. Please click here for full disclaimer.

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Stock Price Newsletter – February 21, 2019

Joe Samuel

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stock price newsletter

One Stock To Watch Ahead Of Healthcare Boom

See For Yourself


The Future Is Delicious

Details Here


Here’s What You Missed 2/20/19

Get The Full Story Here


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Mueller Investigation Is Almost Ready

Daniel Chase

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A half-witted, know-nothing playwright by the name of William Shakespeare once wrote that “these violent delights have violent ends.” The line, taken from Shakespeare’s Romeo and Juliet, also featured in Westworld, depicts a scene in which Friar Laurence cautions Romeo into falling for Juliet because his love may catalyze his own violent end. I attribute the words of Shakespeare to the current predicament facing President Donald Trump and his administration. In the two or so years since Trump took office, special counsel Robert Mueller has worked without end to investigate whether the Trump administration colluded in any way, shape, or form, with Russia during the 2016 presidential election. 

After countless subpoenas and inducements of former Trump associates and administration members, sources indicate that Mueller’s long nights away from the family could soon be over. Towards that end of January, Roger Stone, a former associate of Donald Trump before he became president, was indicted on charges of seeking stolen emails from WikiLeaks that could damage Trump’s opponents during the 2016 presidential election season. 

Per the official language of the indictment:

“…After the 2016 U.S. presidential election, the U.S. House of Representatives Permanent Select Committee on Intelligence, the U.S. Senate Select Committee on Intelligence, and the Federal Bureau of Investigation opened or announced their respective investigations into Russian interference in the 20126 U.S. presidential election…Stone took steps to obstruct these investigations….He made false statements to the HPSCI about his interactions regarding WikiLeaks, and falsely denied possessing records that contained evidence…”

-Robert Stone indictment 

The indictment went on to explain that Stone attempted to persuade a witness to provide false testimony and withheld pertinent information from federal investigators. According to several sources, Stone was arrested by the FBI Friday morning while drinking his morning coffee at his home in Florida. Stone’s attorney immediately attempted to defuse any public sentiment stirring up connecting Stone to special counsel Mueller’s investigation, suggesting that Stone’s indictment “focuses on allegedly false statements…made to Congress,” and has nothing to do with Russian collusion. 

According to CNN, Attorney General Bill Barr is limbering up in preparation to announce as early as next week the completion of Robert Mueller’s investigation, “with plans for Barr to submit to Congress soon after a summary” of the confidential report is prepared. Interestingly enough, though the details of the report concern both the American people and its presiding government, under special counsel regulations, Mueller must submit his “report” to the attorney general and the law doesn’t require this document to be shared with anyone.

Barr is under no formal obligation to publicly share the report, but I can already assume that members of the Democratic leadership will be banging on his office door until he throws them a bone. 

The question on everyone’s mind is, what Mueller discovered in his lengthy investigation. Mueller was appointed to the case on May 17, 2017, and in years following this date, Mueller has had his hands full. Early last week, Mueller’s office filed its sentencing memorandum against Paul Manafort, Trump’s former campaign manager, who will be sentenced next month in federal district court in the District of Columbia. 

“For a decade, Manafort repeatedly violated the law. Considering only the crimes charged in this district, they make plain that Manafort chose to engage in a sophisticated scheme to hide millions of dollars from United States authorities. The sentence in this case must take into account the gravity of this conduct, and serve to both specifically deter Manafort and those who would commit a similar series of crimes.”

sentencing memo from Robert Mueller

As for the findings of Mueller’s investigation, we will have to wait and see how Attorney General Barr chooses to go about sharing the report, if he ends up sharing the information at all. The information could disturb the Trump presidency and possibly give Democrats grounds for introducing articles of impeachment. 

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