Huge skyscraper projects have historically coincided with the beginnings of economic downturns. In economics-speak, a record-breaking skyscraper may be a leading indicator of a downturn.
The commentary above & below consists of edited excerpts from an article* written by Elena Holodny (businessinsider.com).
There are at least 28 other huge skyscraper projects being planned right now in various places like New York, Russia, China, Dubai and Saudi Arabia which has officially secured the funds to build the world’s tallest building. Jeddah Tower (or Kingdom Tower) is expected to reach 3,280 feet — or 1 kilometer — into the air which will dwarf the current tallest building in the world, Dubai’s Burj Khalifa, which opened in 2010 and reaches “only” 2,716 feet.
To show this historic trend, FBN Securities’ JC O’Hara put together a presentation titled “Skyscraper Index is Triggered,” which included a 100-year-long chart showing this eerie correlation with the Dow Jones Industrial Average [see below]…
“A period of easy money leads to rapid expansion of the economy and a boom in the stock market,” O’Hara wrote. “Credit fuels a substantial increase in capital expenditures…This is when the world’s tallest buildings are begun. Investment in skyscrapers peaks when cyclical growth is exhausted and the economy is ready for recession.”[The original article* was written by Elena Holodny (businessinsider.com) and is presented above by the editorial team of munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (see sample here – register here) in a slightly edited ([ ]) and abridged (…) format to provide a fast and easy read.]
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