Your Investment Choices Now Will Determine Whether You Lose Great Wealth or Build Great Wealth in the Near Future.
Within the next 5 to 10 years, there is an extremely strong possibility that a Peak Investment Crisis will hit all regions of the world. I uncovered the likelihood for this crisis because my investment strategies do not rely on crunching numbers or charting technical patterns, but on uncovering money trails among the most powerful political, financial and corporate institutions in the world. Statistics and numbers are constantly manipulated and are frequently less than truthful. That’s why millions of investors that rely solely on fundamental analysis never build wealth.
However, the money trail does not lie. How you position your portfolio now will determine whether you will build wealth beyond your greatest expectations or whether you will have to postpone retirement and struggle for the next couple of decades.
Did you know that immediately before the Great Depression hit the United States, that U.S. stock markets had skyrocketed for about a decade straight and that unemployment was less than 1%? Did you know that immediately prior to the 1997 Asian Financial Crisis that hit the Southeast Asian “tigers”, and in particular, Indonesia, South Korea and Thailand, South East Asian economies were booming with high single to low double-digit growth rates as foreign investment flooded these markets?
In fact, immediately prior to the Great Depression, the outlook for the U.S. economy, at least on the surface, could not possibly have been better back then. But when the tide turned, investors got smacked in the face by a 2,000-pound bear and lost their fortunes overnight. And in Thailand, immediately prior to 1997, economic conditions were so rosy that the overall economic giddiness sparked a real estate boom, the evidence of which can still be seen today, more than a full decade later.
However, despite everyone’s giddiness back then, when the crisis hit, Thai currency lost more than 50% of its value in just six months and businesses failed left and right! Just drive through Bangkok, and you will easily spot empty shells of half-constructed office buildings and luxury residential buildings sprinkled throughout the city. When the crisis hit and funds to complete them dried up, these yet unfinished projects had to be abandoned
In reality, though the conditions that caused both of these crises had been developing steam for many years, all the average investor saw was the result, the loud crash that occurred when the steam blew the head gasket. In both instances, though the great majority of people lost massive amounts of wealth, the very savviest of investors actually built great wealth during these times.
And just like during past economic crises, this Peak Investment Crisis will undoubtedly present one of the best opportunities of our lifetime for savvy investors to also build great wealth in the near future. Clearly, an economic earthquake of great magnitude can happen again, and when many indicators below the surface point to such an occurrence as an extremely high possibility, only the most unwise of investors would do nothing to prepare for it. In fact, I would argue that this brewing Peak Investment Crisis is even more dangerous than either of the two financial crises I have previously mentioned because this one is more likely to affect the global economy on a much more significant scale.
Since 1997, hedge funds and financial derivative instruments have exploded, growing into cumulative market sizes that exceed hundreds of trillions of dollars. During the 1997 crisis, the total global scale of these financial instruments was like a baby monkey back then compared to their King Kong-size today. This explosive growth in financial instruments has linked asset classes, industries, and global markets like never before, allowing a fiscal crisis in one region to have a much more pronounced domino effect in global markets today. So whereby in the past, a small rock that dropped on top of a snowdrift might have caused a local financial disaster that trickled down to other economies, this same rock today is capable of creating an epic global financial avalanche. And what makes this crisis near inevitable is that the rock that is about to drop is no small stone, but instead a massive boulder.
How to Ensure that You Build a Great Fortune in the Stock Market Instead of Losing it When This Crisis Hits
For the reasons discussed in this article, 90% of investors will fall into one of two categories over the next 5 to 10 years and beyond. They will either build great wealth or lose much of their wealth. Due to the global scale of this imminent crisis, there will be very few investors that won’t fall into one of the two extreme categories of building great wealth or being mired in financial catastrophe. How do you ensure that you are on the proper side of the fence?
The answer is to manage your own money, period. No ifs, ands, or buts.
Handing your money to a global investment firm is fine if you have already built your wealth and are no longer interested in continuing to build it, but even then, you are still likely to lose great amounts of wealth when this crisis hits. And what if this crisis never materializes? Even though we strongly believe that conditions today make this crisis near inevitable, even if by some miraculous intervention of various world governments, it does not happen, learning how to manage your own money will still give you a great chance of achieving 20% to 25% or more annual returns year after year. And if this crisis materializes as we expect, well then, during this time, your returns should leave 20% to 25% annual returns in the dust.