This Asset's Boom Is My 'No. 1 Prediction for the 2020s'

Making a name for myself before 'Mr. Melt Up'... The one investment that would make me give up gold forever... This asset's boom is my 'No. 1 prediction for the 2020s'... Economics 101 is in play... Why this red-hot market will likely continue... Three ways to invest in this ongoing trend... The key to success in this boom...

If I (Steve Sjuggerud) had to, I would give up gold forever and invest in this instead...

That claim will probably surprise anyone who has read my work over the years.

Sure, I've made a name for myself as "Mr. Melt Up" lately. And I started pounding the table on stocks as far back as the very early days of this historic bull market.

Heck, I told my DailyWealth readers that the market had bottomed in March 2009... And I maintained my bullish outlook year after year, in spite of whatever market boogeyman was popular at the time.

Now, here we are in 2021... The market is hitting all-time highs once again after the COVID-19 panic in early 2020. And I'm proud to see that my advice has benefited scores of readers time and again for more than a decade.

But if you think I'm just a perma-bull and stock market cheerleader... you're wrong.

I began writing my True Wealth advisory way back in 2001 – two decades ago. Back then, it wasn't exactly a great time to recommend stocks...

The tech-heavy Nasdaq Composite Index was in the midst of an 80%-plus crash. And the benchmark S&P 500 Index wouldn't bottom for about another year and a half.

So instead of forcing stocks, I looked for other investment opportunities. And it was in one of those quirky alternative assets where I first made a name for myself...

Before I started pounding the table on stocks, I found plenty of ways for my readers to profit in gold...

It was the early 2000s... And the precious metal was near the end of a decade-long bear market.

To say no one cared about gold at the time would be an understatement.

I remember visiting my first gold coin show... The exhibit hall was half full. And I don't think anyone there was below the age of 60.

This wasn't a hot investment show... It was a tired group of collectors.

But for me, a young guy looking for hated opportunities... it was perfect. (Regular Digest readers know "hated" is one-third of my investing mantra... "cheap" and "in an uptrend" are the others.)

I started making gold recommendations to my True Wealth readers...

We bought several gold coins that soared triple-digit percentages. I recommended gold stocks as well – including Seabridge Gold (SA), which went on to be a 995% winner. To this day, it's No. 4 in the Stansberry Research Hall of Fame at the bottom of every Digest.

Gold and other alternative investments are what kickstarted my career. Those big winners helped put me on the map. But the thing is, if I had to...

I would give up gold forever.

That's because another investment is even better. It's one I've personally poured money into over the past decade... And while it has done well over that period, the biggest gains are likely just getting started.

Today, I'll share this asset with you... I'll also cover why it's such a great time to buy right now... And finally, I'll highlight three ways you can invest in this trend in your own portfolio – including two with just a couple of clicks in any brokerage account.

So... what investment are we talking about here?

No, it's not bitcoin or any other would-be gold substitute...

Like those assets, this one will act as a hedge against inflation. But it's got a lot more going for it than just that...

It's why I poured almost all of my investment dollars into this asset over the past decade. And honestly, if you've read my work over that time, I'm sure you already know what I'm talking about...

Real estate.

I started buying properties in 2010, just as we were coming out of the housing bust.

I bought vacant lots... a condo near the beach... several homes... and even a mile of intracoastal frontage. I bought industrial land and a few trophy properties in my area, too.

I've been doing this for more than a decade. And real estate prices have soared over that period.

But even given that rise in prices, we haven't missed the boat... Again, if I had to pick one investment right now, I'd take real estate investing over gold. And it isn't even close.

That might seem crazy given the wild times we've seen in real estate this year...

Home prices are up nearly 20% in the U.S. over the past 12 months. That's the largest one-year return we've seen in the past two decades, according to the S&P CoreLogic Case-Shiller 20-City Composite Home Price Index.

Simply put, as my analyst Vic Lederman noted in yesterday's Digest... housing is red-hot right now.

As Vic explained yesterday, homes just about everywhere are selling immediately and above listing price... And if they want a chance, many buyers are being forced to waive their "safety nets" – like being able to back out based on an appraisal or even setting foot in the home before putting in an offer.

It has created a market even more hectic than what I saw leading up to the housing crisis.

I doubt any of this is news to you.

But given all of those facts, you might wonder why I'm still so excited about housing... After all, we've experienced a decade-long boom and what feels like complete mania in the space.

The answer is simple. As Vic noted yesterday... while this might feel like a mania, it's actually perfectly rational. And it will likely last much longer than most believe...

Seriously, it's economics 101...

What's happening today isn't wild speculation like we saw in 2004. It's not folks quitting their jobs to get rich quick by flipping houses. It's all about supply and demand.

Right now, we have a ton of buyers entering the market and not nearly enough houses for them to buy. It's really that simple.

There are plenty of explanations for what's going on...

COVID-19 always gets some credit. It has forced folks around the U.S. to reprioritize their lives... And that means making big changes to where they live and what they do for work.

Also, the millennial generation is becoming integral to the housing market... Millennials are now the largest generation of home buyers, according to the National Association of Realtors. And younger millennials (ages 22 to 30) are almost entirely first-time buyers.

Still, the "why" isn't nearly as important as the facts of this story. And the biggest fact is that new home sales hit their highest level in 15 years in January. Take a look...

We've seen a decline in demand from the peak over the past few months. But you can see in the chart that new home sales are still up double digits compared to 2019 (before the pandemic). And they're up nearly 30% over the past four years.

Meanwhile, the number of homes available for sale has fallen dramatically over the same period...

This chart shows the number of active listings in the U.S. at any given time over the past five years. And as you can see, we're well below half the level from 2016.

Again, this paints a simple picture... Today's apparent housing mania isn't a mania at all. It's simply a massive imbalance between supply and demand.

That means the current housing boom is more sustainable than almost anyone realizes.

Homebuilders can't fill the supply gap overnight. That means the red-hot market we've seen can – and likely will – continue. And it leaves only one big question...

What are the best ways for you to take advantage of it?

A decade ago, I began buying up as much physical real estate as I could. I was living in North Florida, one of the worst-hit areas from the housing bust... So the opportunities were everywhere.

You could follow my lead today...

Buying up physical real estate is your first option. But frankly, it's not right for everyone... There's a lot more hassle involved, and more risk in individual properties.

If you're OK with rolling up your sleeves and doing the extra work, then I encourage you to think about adding physical real estate to your portfolio today. I have no doubt its value will continue to soar in the coming years, just like we've seen over the past decade.

But if simpler sounds better to you, you can take advantage of this situation in two other ways... And they're both within the stock market.

Invest in the companies directly responsible for filling the gap in housing supply... That includes homebuilders and other companies that own physical real estate.

These kinds of companies are sure to do well in the coming years... High demand will mean plenty of work for homebuilders. And companies that already own physical real estate should see the prices of their assets rise... and their stock prices will rise accordingly.

This is a great option... It's one I'm recommending to my readers right now. But there's another way to make this trade, too. It comes from an old saying in investing...

The folks who really made money during the California Gold Rush are the ones who never spent a single second actually looking for gold.

Instead, they set up shops selling picks and shovels... panning equipment... rugged jeans and boots... and so on. They sold what everyone else needed in the rush – win or lose.

We can do the same thing in the housing market...

Own the "picks and shovels" companies that will thrive as the housing boom continues. By that, I'm talking about the businesses that sell supplies to homebuilders, contractors, and even the do-it-yourselfers... as well as the companies that help get building done, whether through services or equipment.

These companies are crucial to keeping the housing boom on track. And finding the right businesses can lead to incredible profits...

For example, heavy-machinery maker Caterpillar (CAT) is up roughly 1,500% over the past 19 years. That's more than double the total return of the S&P 500 over the same period.

These picks-and-shovels investments will likely be the unsung heroes of the housing boom that's already underway... And I believe the investors who get on board with the right opportunities now will see hundreds-of-percent gains in the coming years.

No matter which investment you prefer, the key is getting on board now...

Today's setup is truly as good as it gets.

The housing market is red-hot... But it's no speculative bubble. And that means it can – and likely will – continue from here.

By investing today, you're setting yourself up to capitalize on what could be one of the best decades ever for housing... The real estate boom is my "No. 1 prediction for the 2020s."

And it's why I'd happily give up on gold forever if I had to pick between it and real estate.

It's also why I recently sat down to share all of these details with everyone interested in listening. This is a big story... It's one I want every investor to see and understand. You can watch the entire presentation for free right here. I urge you to check it out immediately.

I don't want you to wake up a few years from now kicking yourself, wishing you had gotten in when you had the chance. Instead, I want you to understand exactly what's happening... and learn the best ways to put your hard-earned money to work before it's too late.

Now is the time. Don't let this incredible opportunity pass you by.

New 52-week highs (as of 9/8/21): American Tower (AMT), Costco Wholesale (COST), Cintas (CTAS), Quest Diagnostics (DGX), Intuit (INTU), Cheniere Energy (LNG), Motorola Solutions (MSI), ResMed (RMD), Thermo Fisher Scientific (TMO), and Vanguard Short-Term Inflation-Protected Securities Index Fund (VTIP).

In today's mailbag, feedback on Tuesday's Digest about the job market and companies offering added benefits... What say you? As always, e-mail your comments and questions to feedback@stansberryresearch.com.

"Great call Wal-Mart, you morons! [College] is the last place these young innocents need to be sent. The late Walter Williams, a longtime college professor at George Mason up until the day of his death, wrote an article in [2018] and stated (colleges in the U.S. have become a force for EVIL)!. Walter was obviously in a position to know what he stated was ACCURATE!" – Paid-up subscriber S.P.

Good investing,

Steve Sjuggerud
Jacksonville, Florida
September 9, 2021