| "The Vision" |
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| Harry S. Dent, Jr. |
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in 1988, a Harvard Business School graduate by the name of Harry S. Dent Jr. published his first book, Our Power to Predict,
in which he postulated that the U.S. economy was and is dependent upon the economic behavior of its citizens.
Since our economy is two-thirds consumer-driven, he concluded that there is much to be gained by studying the spending
and investing habits of the current “Baby Boomer” bulge that is rapidly changing our society. Harry
likened it to a snake that swallowed a pig: You can easily see the progress of the snake’s meal as
it moves through the snake.
In 1993, Harry’s second book, The Great Boom Ahead, became
a national bestseller. At the time, he was practically alone in predicting that our economy was on the
verge of an upward explosion of creativity and economic expansion, a new age of prosperity. Dent
foresaw a booming stock market, falling mortgage rates, and the resurgence of America as an economic superpower.
He said it would continue until about 2008.
How did he arrive
at these sound predictions?
Believe it or not, he tracked birth rates. That is,
as birth rates go up and down over the years, there is a very predictable spending and saving pattern that emerges over the
lifespan of each generation as it moves from birth to maturity to retirement to death. These patterns are
known with great precision.
For instance, the U.S. Department of Labor knows
that, on average, we enter the work force at age 19. We get married at age 25.5 (27 for men,
24 for women.) Two years later, at age 27.5, we have our first child. We
buy our starter home at age 33.5 on average, get a mortgage, and furnish the house. About age 43, we trade
up to the largest home we will ever own, but don’t finish furnishing it until age 46.5, which is also
when most of our children leave the nest, at their age 19. On average, our peak-spending year
is when we’re age 48.
What happens next? It’s obvious, isn’t
it? If we’re empty-nest parents, we don’t need to spend money for trendy tennis shoes, or another
new minivan. Our house is already furnished, our car insurance premiums are declining, we don’t need
designer clothes for the kids, and the refrigerator doesn’t have to be crammed with food. On average,
at age 48 we start saving for our retirement –seriously. And we start investing seriously.
For almost anyone
who cared to take a look, this data should have given a great insight into the future booms and busts of the economy.
But as far as I know, the only person who really looked at this was Harry Dent.
And what he found
was extremely interesting. When he studied the relationship between the stock market and the birth rate
over a generation (adjusted for immigration), he found a stunning correlation. 48 years after a surge in
the birth rate, the stock market surged.
Based on the huge bulge in births (and immigration) that is now moving
through our economic pipeline, Mr. Dent predicted that consumer spending would continue to grow until around
mid-2009, when the majority of this massive generation would reach their spending peak.
This is so stunning that you literally have to see it to believe it-so
I want you to see it for yourself in a special client briefing I have prepared for you. An understanding
of Harry Dent’s theories will tell you where to invest for the next years ahead.
By the way, you will
understand the volatility we saw in the third quarter of 1998. Harry even predicted it on page 291 of his
The Roaring 2000’s:
"The greatest buying opportunities since 1994 and late 1997 may
occur in 1998, due to a very predictable cycle of corrections that dates back to the founding of the Federal Reserve…
This cycle suggests that the next strong overall stock market surge is likely to occur from mid-1998 into 1999, and continuing
into 2001.”
Though
published in 1998, this was written in 1997. Talk about getting it right! Naturally, his past performance is no guarantee he will be right in the future. But as an economist,
he has made a lot of great calls.
Question 1: How should we be allocating for the next decade? Question 2: How can we get money
tax-free in retirement?
Answer:
Attend this FREE orientation meeting and learn: (1) Strategies to get money tax-free in retirement. (2) Learn about
this vital, new, and very powerful theory of the economy and why it really goes up and down. Should you
be in or out? There are answers to this question.
If you would like to attend this brief orientation meeting, please feel free to call 1-801-545-0696,
or request an invitation from us.
We will make you two promises right now. This is not
a sales presentation and you will discover at least one new idea to reduce your taxes, increase your account values, or increase
your income for retirement.
Aggressive Portfolio Our Aggressive portfolio is for
the investor who desires to build substantial
wealth over time. The investments of the Aggressive Investor are usually slanted toward those
that offer the highest possible returns but also have more volatility.
Growth Portfiolio The Growth Investor is more interested in capital appreciation.
This investor understands that he or she must take some market risks and is willing to accept those risks in an attempt
to outperform inflation. Manager:
Moderate
Portfolio The
Moderate Investor seeks long-term returns but maintains a reasonable amount of money in cash and bonds to protect against
volatility. This investor is usually attempting to obtain a high level of total return through
a moderate mix of many asset classes.
Income Portfolio The Income Investor seeks funds that can provide long-term income while maintaining a measure of principal
protection in down markets. This investor’s objective is to obtain as high a level of total
return as possible through a conservative asset mix.
Retirement Planning
Investments & Wealth Management
Estate Planning
Life Insurance Planning
Business Planning
College Planning
Tax Planning
Banking (Free Checking, Money Market, CDs, etc.
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