How to make enormous returns on a slingshot.

David slew Goliath with a slingshot and we will be using a slingshot not only to regain all that we have lost but to propel us up to the next level in gaining wealth.

In 1987 I experienced my first stock market crash and thought the world was ending and my career was over.

The fear of the unknown combined with the only comparison I had was the 1929 stock market crash followed by the great depression. I was feeling probably the same as you are right now.

But that was many years ago, and I have learned much since then. Back then, only 4% of the public invested in the stock market; therefore, in my opinion, there was no stock market as 96% of the crowd was never funded. So using the 1929 stock market crash was an emotional waste of time. But at that time, that was all I knew.

Since then, we have had three waves of Baby Boomers entering the stock market from North America and from around the world and purchasing RRSPs, Pension Funds, and various other tax-deductible products like the 401k in the U.S. Also, people were taking equity out of their homes to invest in the higher returns offered by the stock market while getting a tax deduction on the interest.

The stock market was not mature in 1987, as the first wave of baby boomers was just entering the stock market.
So everything from now on was new and unknown. We were told no one could predict the stock market; well that turns out to be incorrect. What we could not do is predict the economy and politics. Once we had a handle on those two things, it was easy to forecast the stock market. It only took me 30 years to learn that.

And now, after 30 years, the stock market is mature, as 75% of the public is now invested one way or another. So now. We can do a comparison to the past with a great deal of accuracy. So let’s do that now.

In 2008 the financial crisis caused panic as investors worldwide were losing up to 60% of the value of their money. We were down 35%, but I was excited because I knew what was coming next.

In my seminars, I would say, “the worse this was, the better it was for us.” Many people got caught up with the mainstream media and listened to their opposing views on what they thought was happening. The mass media were wrong, as usual.

But by this time, I gained experience from;

1/ Black Monday, Oct 19th, 1987.

2/ August 1989, the U.S savings and loan scandal.

3/ September 1988 with the Asian Contagion and Russian crisis.

4/ March 2000 and the Dot.com Crash and Y2K.

5/ September 2001 the Terrorist attack [911].

6/ September 2008, when the Lehman Brothers Bankruptcy started, 2008
Financial crisis.

After all those crashes, Warren Buffett would say the same thing every time “take the emotions out of investing, or you will panic and sell and then watch from the sidelines as the market goes back up and miss the beginning of the slingshot.
He would then come in and scoop up all your depressed stock and ride the wave up on money that would have been yours.

So in my seminars, I told everyone what I had experienced during those previous crashes: that all the governments worldwide would panic and do two things.

1/ Drop the interest rates to stimulate the economy.
2/ Come out with a stimulus package.

They needed to act fast, and I knew the next Fed meeting was on the 19th of March 2009.
I said that the Feds would drop the interest rates from 4.5% to 2.5%, and that would mean everyone with a loan could refinance that loan at a lower rate, creating all kinds of business for the banks and avoiding the Banking Crisis the mainstream media were spinning.
I then said this would cause a slingshot in the stock market. To my surprise, they went even further and dropped the rates to 0.50%, which made me announce that slingshot would be like a rocket straight up.

So knowing we were headed for a slingshot, we next had to find out which area of the markets would react the fastest and go the highest.

The second strategy I was using at this time was Demographics; we had been investing in the BRIC before the Crash, which were Brazil, Russia, India, and China. So at the end of December 2009, here were your results from this slingshot by investing in these areas.

Brazil led the way with a 194% return for 2009.

Russia was next with a 179% return.

South Korea chipped in with 139%.

India came next with 137.3%.

Mexico ended up 94%.

China was up 89%.

Nasdaq was 55% and the TSE finished 54%.

Because we had 25% in both the Nasdaq and the TSE our total return was
lowered to 88% return for the year.
But since 84% of Canadians were still sitting on the sidelines they missed it completely because their adviser was unaware of slingshots. This is why most advisors do not create wealth when they miss these opportunities for their clients.

One of the things I was also doing at this time was connecting the dots, but at this time I was not aware I was using this as a strategy and this was the beginning of that strategy.

By connecting the dots. I started to see that every country in the world was watching the U.S dollar soar and their currency falling in comparison. To safe guard, their money every central bank started to buy Gold and gold would go from $1,000 an oz to $2,000 by the end of 2010.

So after we made our 88% on the slingshot I advised all my clients to move 100% into gold and Natural Resources using my “connecting the dots strategy”.

Our results for the year 2010 ended up with a 45% return.

So the combination of my strategies put together resulted in a total return of 133%

All our clients were very happy and started to call me the Warren Buffet of the North. But of course, there is only one Warren Buffett and he was one of my mentors. So I take that as a compliment.

The sad part was again 84% of all Canadian were never told about the effects of slings shot where they can regain all their losses and then go even higher.
Since I have been in this industry for 30 plus years there has never been a time that a slingshot in the markets never followed a crash now that the stock market has been established by the entry of the baby boomers.

Since 2008 we have had one more crash. When they first announced the lockdowns because of covid19. You may recall the market lost 28.5% in two weeks

The mass media again started to scare everyone by telling everyone that we were going into a long depression and this was the black plague or Spanish Flu all over again but again there were no stock markets to compare to back then. So comparing them was useless but they did that anyway and panicked everyone.

The Big Financial Institutions were not much better as they never remarked about an upcoming slingshot that would take your stress away. All they said was hold tight nothing about getting you ready to ride the slingshot, so all you did was regain your losses but missed out on creating real wealth. Your notice these opportunities are usually 10 years apart so if you miss one you can see why it is so important to not miss them if you want real wealth.

However, I wrote an article that is on my website in the first week of April two weeks after the lockdown started, that not only would we regain 100% of what we lost in the next six months, but go on to make much higher values. I was wrong it only took 6 weeks to regain everything.

I then connected the dots and compared 2008 to this crash. I noticed many similarities and then stated that the total return from the bottom of this market to the top of the next could well be similar to 2009 when we made 88%.

So here are the results; we gained back the 29.50% that was lost and then made an additional 45% in the Nasdaq you can check out these numbers very easily on Google.

So our total return was 74.50% from the bottom of the market to the top. Proving once again that after every crash comes to a slingshot and if you start to understand this it takes all the negative emotions out of investing and prepares you for creating wealth.

So the key right now is the more money you have to play the slingshot the higher your investments will be at the other end of this downturn.

It is worth repeating again and again that 84% of Canadians were sitting on the sidelines in 2009 and missed those great returns.
The same situation happened again during covid and my fear is most people of you will miss it again as many Advisors are unaware of what to do and listen to their big Financial Institutions that only call slingshots after they have happened. And that is too late.

The question now is are you just waiting and doing nothing or are you protecting your assets now so you have more to reinvest at the right time? Which of course will give you more income at retirement.

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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.