Can you make money using a strategy called “connecting the dots”?
I have been showing clients how to use this strategy ever since I read about it in an investment publication created by Tony Sagami, the only person I know that predicted the tech market selloff in the year 2000, therefore saving many investors from losing money.
I read how he was able to make such a prediction by gathering news articles or current events and create a picture by connecting the headlines. As he said ,by connecting the current events in business it was similar to connecting the dots. They both create a picture.
I have discovered, that the main street media will be telling you one thing, but connecting the dots gives a much more accurate picture of the economy. Especially when you know that the media will use negative news to sell readership and therefore only give you half of the real story on what is going on.
Connecting the dots gives us a clear vision of what is really happening .
Over the last 30 years, I have been using this strategy, along with Market Sentiment, Demographics and a Money Movement Strategy to obtain better returns for my clients.
This created an average return of 19.59% over the last 10 years.
On my web site I have an article on how we created 22% for the last 9 years using a combination of Demographics and connecting the dots. Last week I gave you two examples of how we used Demographics to enhance our RRSP’s to maximize clients investments.
So how did connecting the dots help?
In 2007 Israel was at war with Lebanon and in the month of August the markets were still flat for the year-to-date.
Harry Dent( a renowned market analyst) had predicted a banner year for 2007 but because of the war, markets hate uncertainty and had become volatile. Fearing the markets were now heading into Sept/Oct seasonal correctional period, Harry Dent told everyone to get out of the markets.
I saw that the Israeli Tanks were on the northern border of Lebanon near Syria and because the Israelis’ had come from the southern border, it meant they had already done most of the fighting and only a mop up was expected before peace was restored.
I expected this to happen within weeks and therefore all the uncertainty on the markets would dissipate and a rebound(sling shot) would occur. That is exactly what happened and in three short months we gained 25%.
Next came the 2008 Global Meltdown and while everyone was selling and in a panic. Using connecting the dots again ,I knew from past experience that the Feds now had their backs against the wall and had no choice but to cut interest rates very sharply and come out with a stimulus package to repair the damage.Therefore in my seminars I made a prediction that we would not only gain back everything we were down but make a great return on the sling shot that would follow. Especially when we used Demographics to guide us to investing in the BRIC [Brazil, Russia, India and China] the results were a staggering 84% return [all Tax free] in 2009.
Because the U.S. was spending $85 Billion every month to prop up the U.S banks and economy, it was forcing up the U.S DOLLAR and making every other countries’ currency weaker . To offset this, Central Banks around the world started to buy Gold to strengthen their own currency. Another concern was that the debt was growing faster than the GDP now. In fact it was now 107% of the GDP. Many foreign Banks were thinking what if the U.S.did the same thing the Greeks did in 2011, default on loans . So this created an opportunity for us again, but this time in Gold.
The following year our return was 45%.
So now you can see using “CONNECTING THE DOTS along with DEMOGRAPHICS combined for an outstanding 129% return. Meanwhile 84% of Canadians were not aware of a stock market rebound in 2009, they were still living in fear and had missed one of the best stock market rallies in History.
So why did so many people miss these obvious signs and live with the losses they sustained?
It’s because so many people still rely on the mainstream news for their investments and use Banks to advise them.
First all banks have a policy on Discretionary Trading. This is what they say,”discretionary trading practices are prohibited”.
The following is an excerpt from a previous message sent to all field members.
Examples of this prohibited process are: “Representing to your customers that you will monitor their investments and “when the time is right” make decisions to move those investments to other funds.
All my clients have the same funds as I do. So when I monitor my funds, I am actually doing the same with theirs.
When I decide to move my funds I send an email to my clients and they all ask me to do likewise for them.,
Another prohibited example is: Moving your customers “en masse” to other investments you consider to be more suitable (block of business transfer or switch).
So the question comes down to why do you have an Adviser if the Banks will not let them advise?
Here is the killer “Compliance with the above is mandatory and failure to comply will result in disciplinary action, which may include Termination of your agreement”.
Recently The CBC did an investigation into the Banking practices of up selling and out right lying by advisor in order to qualify for points needed to keep their jobs and The Banks have made Billions in profits using these illegal tactics.
Yet people still believe they are getting good advice.
You don’t have to be wealthy to call me or email me. With 35 years of experience I know I can help you not only achieve better returns on your investments but also help you save for retirement.