Thoughts: “Good news for the Long-Term Investor”

The general direction of the economy is fairly predictable on a long time basis. When you look at the long term chart of the Dow Jones Index you can roughly see a stairsstep pattern. There are relatively flat periods for 15 to 20 years, then a rise for 15 to 20 years and then a flat period and a rise and so on, and so on. I believe we are at te beginning of a new rise. 

Dow Jones Long-Term trendline

During the flat stage, the market gains about 2% per year. 
During the riser stage, they gain 15% per year over the entire 15 to 20 years. It is not said that there are no downfalls but the general direction is up (or flat). The downfalls are relativly short if you look at the bigger picture of 15 to 20 years.

During each rising stage, the markets will double about 4 times. 2…4…8…16. A $1 investment will become $16 if you own the index. $30,000 becomes $500,000. If you are able to have a minimal return of 30% a year like we promise, $30,000 becomes $3,000,000 in a span of about 15 to 20 years. $3,000,000 when you follow this website!! What’s a cup of coffee compared to that?

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Let me explain: Since the start of te index in 1896, the Dow Jones has had 4 flat stages and 3 risers. We are right now at the beginning of the next rising phase. These flats and risers are caused by the generational waves in the population. There were 78 million baby boomers. The kids of the baby boomers, which we will call the Boomer-babies, are the cause of the next rising stage. Boomer-Babies are what we call millennials, generation Next, generation Nix, generation Z, etc. Basically everybody who was born between 1970 and 2010 are the kids of the baby boomers, the Boomer-Babies remember that word.

Most everyone goes through 5 (ultimately 6) life stages: 
*1 – Kid stage,
* 2 – Young Adult stage, 
* 3 – Building a Family stage, 
* 4 – Empty Nest stage, 
* 5 – Retired stage. 
And then one Dead stage. That’s pretty much permanent.

About 95% of your income during your life is during the *3 – Build a Family stage and *4 – Empty Nest stage.  The flats in the markets are when a generation is *3 – Building a Family. The riser occurs when that generation are *4 – Empty Nesters.

There are roughly 85 million Boomer-Babies. The Boomer-Babies already control 65% of the income in the USA. As such, they are the largest financial engine ever created on planet earth. The oldest of the Boomer-Babies have already completed the *3 – Build a Family stage, and are now beginning to become *4 – Empty Nesters. Finally, on top of their massive position in income, they will inherit $69 Trillion over the next 20 years free of Federal Tax (unless the tax laws change). What does this mean for investors?

We can reasonably expect the markets to rise over the next 15 to 20 years by over 15% per year until about 2035.

The-Wiseguy 2020

I know that sounds great right? Please do not start buying stock right away. There might be a downfall right around the corner. Be patient, have a look at our strategy and our ***List. And off course follow this website for the best advise. We will show you what is a good time to buy. it is not (yet) now.

If you found this message useful and want to help keep the website alive buy us a coffee. Markets are closed now, until next time and have a good weekend.

From: The-wiseguy and …?? Anonimous ?? …

  • This week I read an article on the internet about the general trend of the markets for the next 15 years. I can not find the article anymore nor remember who wrote it but I was so impressed that I copied some text of the article. Our gratitude goes out to the anonimous writer for the help. And if you are the writer stop by for a cup of coffee please we are relly interested in your story.

Over the Wiseguy

Stock trader, Owner and Administrator of "". . . "TA is like surfing. You don't have to know a lot about het physics of tides to catch a good wave. You just have to be able to sense when it's happening and have the drive to act at the right time"

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