I was recently working with a client who admitted he always wanted to have wealth and live a very comfortable lifestyle. Nothing really outrageous — he wanted to take care of his family, send his kids to college (and maybe even his nieces), travel the world, give to charity, drive luxury cars and have a nice home on the water with a gorgeous view.
He dreamt of living a very comfortable, secure lifestyle, but unfortunately, kept investing in the wrong place at the wrong time — he invested in tech stocks in the year 2000 and bought real estate to flip in 2007.
You can guess what happened.
The problem was he was always investing at the peak of the bubble.
He would wait until he was SURE that an investment would go up, then he would jump in.
By the time it was obvious, it was always at the absolute WORST time. The big gains had already been made and the opportunity was just about over when he jumped in.
It cost him a lot of money and almost his marriage.
He felt frozen, afraid of making another mistake and lost confidence where to invest.
He has had his money sitting in cash for several years, missing out on the stock market gains while the Dow Jones Industrial Average moved from 10,000 to over 18,000.
His heart was in the right place, but he just didn’t understand how the economy moves in cycles and peak in bubbles.
A lot of people miss great investment opportunities that would have made them financially comfortable and secure and kick themselves.
Most experts don’t see it.
Here are where the 3 bubbles are forming:
1. There is a bubble in interest rates. They are historically low and have been held lower longer than any time in the last 50 years! They can only go one direction from here.
2. There is a bubble in government debt. A record $18 trillion — and add to that over $100 trillion of additional unfunded liabilities like Social Security, Medicare, Medicaid, and other government benefits. That’s a record in our debt and a huge bubble that will eventually pop.
3. There is a bubble forming in the U.S. Dollar. The dollar is a strong currency and although that sounds good, it slows our economy (and multi-national companies’ profits) by making our exports more expensive. Not good.
If you you’ve been listening to what I teach about bubbles, then you know these 3 bubbles represent tremendous wealth building opportunities, if you know what to do.
The problem is, most investors’ portfolios are not set up to benefit from theses bubbles and learning about how to profit from the bubbles requires some education.
That’s where I come in.
I help empower you to understand how to create wealth from bubbles. What to do, where to invest, how to invest.
It’s fun, it’s not difficult, and it doesn’t require that you start with a lot of money to invest.
You typically won’t hear what I teach on TV or from other experts.
My forte’ is learning where and how to build wealth no matter what is going on in the economy.
It’s my passion and why I’m a Wealth Mentor and not a financial advisor.
It’s definitely a unique time to invest, (and you may even have a knowing something is off, it’s just not the same) but in my opinion, there are great opportunities for wealth building ahead – in good times and in bad.
Investor John Paulson thought the real estate market was about to decline in 2007 and he made what some have called the “greatest trade ever”, netting him about $8 billion.
Sir John Templeton had the foresight to make millions after the tech bubble popped.
You’ve now seen 3 blog posts about investing by looking forward and financial bubbles and cycles to build wealth.
So tomorrow, I’ve got one more for you…it’s about you moving forward on your path. And I talk about the two big elephants in the room.