The Three Horse Economy – Week 5

Which Horse Will Win?

Short of a Black Swan event, the winner will be the American consumer. The 2017 tax law will combine with Gen Y buying houses resulting in strong economic growth.

There may be some bumpy years but American economic growth will propel our economy and the world economy. Both 2018 and 2019 will be stellar years in economic history.

What is difficult is forecasting beyond 2020 and beyond. At some point in the future there will be inflation followed by a recession as these three forces collide. But careful investing will preserve and create wealth.

It is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is land.