Has The 2025 Flash Crash Just Lit the Fuse for a Land Market Explosion..?
- Catherine Cashmore
- 7 days ago
- 44 min read
In this week's land cycle investor we dig into the recent stock market flash crash and analyse the many resonances between the 1920s land cycle and the 2020s current land cycle,
To finish I join Callum Newman and Murray Dawes of the Closing Bell over at Fat Tail Investment Research to discuss all the analysis and expose the investment opportunities ahead. (Transcript included).
The Land Market Explosion That Outpaced Wall Street
The Roaring Twenties led us to the peak of the post-war real estate cycle in 1929. In the lead up, the notion was that anyone could become a millionaire overnight from speculation on Wall Street.
‘Only the hardiest spoilsports rose to protest that the wild and unchecked speculative fever might be bad for the country‘
The money lay in stacks in Wall Street, waiting to be picked up. You had to be an awful deadhead not to go get some.’ Wrote historian Paul Sann in his book, The Lawless Decade
On the dawn of 1929 there was no one to look over the edge of the cliff and note how far it was down to the bottom of the canyon.
The ‘bottom of the canyon’ was the worst economic downturn in the history of the industrialised world.
It was coupled with a monumental crash in real estate values.
The graph below shows the level of construction activity in Manhattan in the leadup. It peaked at nearly $10 billion over 1925 and 1926, matching the $10 billion in new stock issues during 1928 and 1929.
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