In our previous article regarding the potential China/Asia Economic Implosion, we illustrated how the property market cycles in China (Beijing) are in the early stages of a potentially topping and a massive drop in value.

Today, we are going to try to expand on this analysis a bit further by illustrating how the US and other global established economies may have inadvertently setup certain emerging markets for another global crisis event.  Our research team at Technical Traders Ltd. has developed a unique set of skills in sourcing and evaluating current market events and predictive price modeling systems that allow us to attempt to determine future events with relative certainty.  Within this post, we will attempt to provide further evidence and supporting data as it relates to our belief that we are in a very late stage economic expansion cycle and about to enter a very early stage economic contraction cycle.  As we continue to disclose our research and findings within this multi-part article, we will close this research out by explaining how and why we believe smart investors will be able to create massive opportunities over the next 12 to 48 months from our research.

Please review our previous research post (Part I) of this detailed research report before you continue reading if you have not already read it. It is important that you continue reading this post with the context of the previous research post. Thank you.

You should recall from our first post that we illustrated the expanding real estate cycle events in Beijing and how they related to a downside price cycle that appears to be in the very early stages of rotation. Today, we want to illustrate how the US market has been driving much of this expansion and speculation in China. Below, we have highlighted the same Beijing pricing cycles over a US Real Estate Equity chart. The point of this analysis is to clearly show that real price/equity expansion in the US market did not begin to occur until late 2012 and into early 2013. This was the time that real estate values in the US began an upward trajectory and real equity was being earned again. Prior to this, from roughly 2006 to the end of 2011, real estate price equity was declining or basing – with no real attrition or increase.