How to make enormous returns on a Slingshot?

David slayed Goliath using a slingshot… We use a slingshot to create wealth.
First, what is a slingshot?

In 2008 the financial crisis caused panic as investors all around the world were losing up to 60% of their investments. We were down 35% ourselves but because I knew what was coming next I was excited.

In my seminars I would tell everyone” the worse this gets the better it gets for us”. Needless to say, some people would get caught up in mainstream media and listen to all the negative news. I was alone, everyone thought I was nuts. But I had learned my lessons over 35 years of some of the biggest crashes in market history:

• There was Black Monday, Oct 19th 1987
• August 1989 The U.S savings and loans
• September 1988 with the Asian contagion and Russian crisis
• Who can forget March 2000 and the Dot.Com crash
• September 2001 Terrorist attack (911)
• September 2008 Lehman Brothers Bankruptcy

After all those crashes Warren Buffett would say the same things “take the emotion out of investing or you will panic and sell and watch from the sidelines as the markets rebound.” I also noticed as we, the public panicked and sold all our investments he would start buying all our good stocks that were on sale.

So in my seminars during the 2008 crash, I told everyone to hold tight because the worse this gets the better it is for us. What I also learned from all those crashes was that all the Governments around the world would panic too and would go overboard with their Stimulus packages that would ignite the world’s economies.

I knew that the Feds had their backs to the wall and had to lower the interest rates and the pressure from the Negative Media News made this an emergency, which meant we needed to fix this fast. I predicted they would do this on March 19th 2009 and on that day, I said they would reduce the interest rates from 4.5% to 2.5%, which would mean everyone with any kind of debt would renegotiate all their loans which would bring all kinds of Business back to the Banks that caused this problem in the first place.

However, as I said before they would panic and drop the rates down to 0.5%. Wow! I told everyone to get their seat belts on as the markets would slingshot past where we were at our highs the year before and it won’t take long. The key part about being in a slingshot is you have to be invested 100% and you want to be on the fastest racehorse out of the gate.

At that time Demographics were all pointing to the BRIC, which was Brazil, Russia, India and China. On December 31st. 2009 the results were:

• Brazil led the way with 194%
• Russia was next with 179%
• South Korea chipped in with 139%
• India came next with 137.3%
• Mexico ended up 94%
• China was up 89%
• NASDAQ was 55%
• TSE was up 54%

Because we had 25% in both the U.S and Canada our total return was lowered to 88%. The next year we knew that all these stimulus packages around the world were causing uncertainty in currencies worldwide therefore every country started to buy Gold to protect their currencies. We also did the same as the old saying goes “The Trend is your friend, don’t fight the trend”. Our return in 2010 was 45%. So in 2 years after we had decreased 35%, we gained 133%. AII our clients were happy.

What is sad though was that 84% of Canadians did not even know a slingshot had occurred in 2009. They were still sitting on the sideline wondering if they would ever recover their money.

So in 2010, their advisor would now tell them it is safe to invest in the markets, but it was too late the smart money was chasing Gold now, where we were. The dumb money was chasing the past and entering the stock market after it had already rebounded and the Bank’s clients still never recouped all of their losses because the advisors were too inexperienced to understand that after every crash a slingshot happens.