Here’s your task for this week: Spare a thought for the doomers who keep thinking the world is going to sink into a perpetual depression based off bad debts and bad demographics. They are going to be so wrong.
Oh well. They will keep cowering in fear while you and I get on with taking advantage of the world’s opportunities.
Need a bit of a rev up on this front? Take a look at an obscure story coming out of the United States right now.
This is far more exciting and important than the latest commentary around the cash rate in Australia.
The US House of Representatives has earmarked US$5 million for the Department of Transportation to develop safety and environmental standards for hyperloop projects.
What’s a hyperloop? This is a high-speed transportation system where trains can travel through tubes and are propelled by electromagnetic propulsion.
This could allow trains to go as fast as 700 miles (1,127 kilometres) per hour. It could take a five-hour car journey down to 28 minutes.
This is not all going to happen tomorrow. But it is astonishing in its vision and potential impact.
Part of the massive surge in American wealth came from the original rollout of railroads across the entire country in the 19th century.
May I remind you that it was only the other week that we were discussing Uber’s plan to launch a flying taxi service in Melbourne within five years.
Hyperloops…flying taxis…are all going to happen in your lifetime. Do you not find this amazing?
Space mining may also be a possibility. Late last month, RT reported that there’s an asteroid between Mars and Jupiter with enough natural resource to make everyone on Earth a trillionaire!
We can take a good educated guess as to where this is going. There’s so much wealth up there that it’s going to spark a frenzied race among the world’s great powers.
One wonders what the price of London and Melbourne property might be when the first space billionaire (or trillionaire?) starts buying.
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Let me pause for a breath. I hope you feel a little more pumped up to start the week. We do have to keep our feet on the ground. It’s always a bumpy ride, no matter how bright the future.
We spent much of last week discussing why Aussie property is likely to keep recovering, as forecast here in Profit Watch since January.
Here’s why I keep going with it. I’ve just seen another bullish signal pop up.
On Friday last week, the Australian Prudential Regulation Authority (APRA) said it’s going to scrap the 7% serviceability test. This was a condition it placed on the banks when assessing potential borrowers.
APRA’s heart was in the right place, but it was idiotic to suggest a bank needed to use a 7% hurdle when mortgage rates are under 4%.
How quickly things change in the market! This is not to say that the property market is going to take off today. But it should at least keep ticking over long enough that the big collapse scenario becomes less likely.
That means we can get on with the business of finding good stocks to buy. I mentioned last week that there were plenty of stocks roaring up.
Here’s a cracking example from the action in Phoslock Environmental Technologies [ASX:PET] lately…
On 22 May, it was 44 cents. It recently closed at $1.28. That’s up 190% in under two months.
Let me say that I didn’t catch this one. But it’s a perfect example of why you’re much better served hunting for stocks with this kind of potential than listening to the latest drivel from the RBA.
Oh, wages are a bit low? What exactly can you and I do about this? Precisely nothing. But we can knuckle down and learn about individual business and what might make them go up.
If you’d like to join the hunt for the massive moves ASX stocks can make at times, go here.