Strategy # 3: How We used the GDP Strategy to Create Wealth

Hello fellow investors.

Today I want to show you how we used our third strategy for guidance in creating wealth after seeing the second strategy called “demographics” two weeks ago.

Combined, these two will give you a better understanding of the stock market’s future direction. This will also allow you to take out the emotions of investing, where most mistakes are made.

Once you have your road map to the future, there is no need to take these emotional side roads anymore.

This is also where most financial Planners go wrong because they only react to what is happening now, and their advice to you is often lacking.

This one is very exciting and extremely accurate.

So, let’s get into it. First, play the first link only.
This one will show you the growth of the top ten countries in the world GDP from 1961 to 2017.

Stop reading this now and do that.
So, what did you see?

You probably only saw that in 1961 the U.S GDP was $543 Billion, and by 2017 it ended at $19,334 Billion.

So, you may ask yourself, how does this help me create wealth?

It’s time to read the tea leaves. Let us go back and look closer.

I saw that the U.S. GDP was $543 Billion, and the UK came in second place with $73 Billion. What a huge difference. That is 7.43 times more.
Japan was fifth at $46 Billion and Canada sixth at $41 Billion.

You can see why everyone wanted to come to America. This demographic trend started when people from England [me] and Europe were immigrating to North America to have a better life for their children. I was one of those lucky kids.

I also saw the total GDP of these ten countries was small at $901 Billion back then. Yet we all thought; that we were all getting richer and didn’t know we were poor.

But look at the trade going on around the world at this time. This was the key.

Now let us jump to 1980.

Now we see the effect of the Baby boomers on the GDP. The U.S. jumped from $543 Billion to $2,635 Billion, five times higher than in 1961.

Japan was now in second place and was competing with the U.S. with Toyota[cars], Cannon [cameras,] and many high-speed motorcycle companies leading the way. Their GDP climbed to $1,056 Billion. Canada held in at number 7 with $243 Billion.

So, the U.S. and Japan were leaving everyone in their dust.

I became a Life Insurance agent in 1982 and started to live through what came next.

The total trade around the world increased to $6,986 Billion. Seven times what it was 19 years ago.
Now we became the middle class and were no longer poor. Our standard of living exploded.

Next came 1990, and with a full decade of the first wave of baby boomers entering the workforce behind us, the results were impressive.

The U.S. more than doubled its GDP to $5,713 Billion, with Japan chasing them at $3,066 Billion.
These two countries alone had reached what the world did in trade in total in 1961.

But all you heard from the mainstream Traditional companies after the 1987 stock market crash was we were headed into another depression. How short-sighted they were.
They were so wrong because they did not understand the demographic forces coming, two more waves of baby boomers. It proved to me that they were not using Demographics as a guide.

Canada was hanging in at number 7 with $570 Billion, and the total trade going around the world was now at $15,711 Billion. What a difference from 1961, $901 Billion. Millions of jobs have been created around the world.

No one back then expected the world’s economy to be 15 times that in 1990, 29 years later. Had you known back then what was going to happen, all you had to do was invest in the Dow Jones Average and watch your money grow.

Now we go to 2000 again the U.S. is leading the way as the second wave of Baby boomers entered the workforce and a new thing called technology hits the markets.

Even with another stock market crash coming in March caused by the dot.com craze and the So-called experts telling everyone to run for the hills, the sky is falling.

The U.S. was at $9,754 Billion, which alone eclipses the total of $901 Billion the entire world created in 1961. So much for all those doomsday predictors. Japan now stalls as its ageing demographics reduce its workforce and its spending. Their GDP comes in at $4,611 Billion.

China starts to move up and replaces Canada at number 7 with $1,112 Billion, while Canada is falling behind with only $686 Billion.

A big mistake when investing your money with a bank is they believe you should have your money invested in Canada or, worse a balanced fund. Meanwhile, the U.S. was15 times higher, and investing there allowed you to become richer. Look where your money is invested right now if you invest with a bank. You will see I’m right.

The total trade worldwide for the top ten countries alone was $24,295 Billion, yet we only started with $901 Billion in 1961. Again if you had a crystal ball and knew this would happen, you would not have missed a golden opportunity, listened to all the bad investment advice and slept better and be much richer.

So, now we go to the end of this video and the year 2017.

By this time, all three waves of the baby boomers were driving the markets as they started to get ready for retirement, and at the same time, the tech market had matured, and the Nasdaq had become more stable.

The U.S. was still the place to invest, with a GDP of $19,334 Billion. An increase of 21 times what the entire world did in 1961.

No one could predict that would happen back then, or we would all be millionaires by now.

Japan was passed by China for second place with $12,160 Billion in GDP.
Canada was now listed at number 10 and soon to drop off the top ten countries list with only $1,644.
Believe it or not, the big Banks still want you to invest your money here in Canada.

The top ten countries’ total GDP output has now reached $53,417 Billion.
What growth we saw from 1961 at $901 Billion to 2017 at $53,417 Billion for just the top ten countries only.

So, when you hear the experts say that economies are slowing down, they are not. They never have. It is only the rate of growth that sometimes differs.

So, now you have seen the GDP grow from 1961 to 2017 and only if you had a crystal ball and could see the future. Well, that is exactly what we see in the next video.

My brain was not done with this video yet. I wanted to know if you could use it as a tool for the stock market and to do that, I had to overlap the period with the actual results from the DOW.

And I did that.

I plotted the DOW AVERAGE against the year-by-year results of the GDP and was stunned by the results, and they were the same.

They were like 0j’s glove. They fit perfectly. Every time the GDP went up, so did the stock market. It was an amazing discovery.
But then again, why would it not be the same for both the GDP and the stock market as they are driven by the same thing, a growing economy and what makes up the economy if not Businesses? When Businesses grow so do their stock values. It is that simple.

Now that we have learned from the past, it is time to see the future, but this time you will know to use it to make a better decision for yourself and your family. It is time for you to create wealth.

Now play the second video.

This time I will only use 2021 to bring us up to the present and 2030 to give you a glimpse of the future.

The U.S. is still leading the way with a GDP of $18,842 Billion even though Covid 19 has temporarily caused a drop in GDP. China catching up fast at $13,730 Billion and growing. Japan holds steady at number three with a GDP of $6,457 Billion. India has entered the race with $3,500 Billion, and Canada comes in number 10 at $2,116 Billion.

The exciting news is that the size of the top ten countries’ GDP has now reached $60,512 Billion.
The amount of trade going around the world now means many more businesses are thriving, and that means one thing an ever-increasing stock market.

Now to remind you, Demographic forces drive the GDP each year, and as you know by now, you can not change Demographics; therefore, when we look into the future, we see tremendous growth.
Yes, there will be ups and downs caused by volatility and world events, but over the long term, you will end up with a straight line to success.

So, let us now look into the future.

In 2030 the projected GDP for the U.S. will be $22,645 Billion. China is close to $21,391, and India has jumped past Japan with $6,347. Canada is still number 10 with $2,412 Billion but will drop from the top ten list in the future.

So this shows us that Canada is not a good place to invest when the growth of so many other countries is doing so much better.

So, if your current investment adviser has you invested here, they are not favouring you. On the contrary, they are costing you money.

The amount of trade by the top ten countries in the world is projected to exceed $74,741 Billion.

So, stop listening to all the Negative information about this crash or this person saying this. Negative news sells. Have you ever noticed that many of these statements are followed up with SUBSCRIBE HERE?

The facts are here: the world’s economies are increasing, not shrinking, and that means more money in your pocket if you follow these strategies.

Again I want to remind readers that I no longer sell Insurance or investment products; I only advise as a consultant, which I am allowed to do as I spent 35 years in the Financial service industry.