Last issueI explained that for the rest of the year, we’re going to take a trip down memory lane and revisit your favorite smart money of 2022.
Unsurprisingly, each of these four articles relates to a megatrend or philosophy surrounding macro trading – because, as we’ve seen, focusing on trends and going where the money leads has proven profitable, even in a historical context. UNprofitable year. (Examples A, B, C, etc. can be found here.)
Today we’ll be reviewing a guest post from InvestorPlace CEO Brian Hunt titled The only acronym you should care about…
What is “BDT”?
The investment world is full of acronyms: IPOs, ETFs, IRAs, NYSE…they go on and on.
So, if you’re considering investing, it wouldn’t hurt to expand your vocabulary and learn some of the acronyms in the world of money, especially the one called “BDT”.
It is perhaps one of the most important acronyms in the world of money and business. But you won’t find it on any conventional finance website… That’s because that particular acronym is one that our InvestorPlace CEO, Brian Hunt, coined himself.
“BDT,” says Brian, “stands for Big Dominant Trend.”
At any time, there is at least one wealth-creating “megatrend” that is so monumental…so impactful…and so powerful…
… that all other trends take a back seat when it comes to creating dominant companies with sharply rising stock prices.
The only thing that really matters is the BDT.
Three recession-proof free shares for 2023
Legendary growth investors Louis Navellier, Eric Fry and Luke Lango just revealed 3 FREE recession-proof stock picks for 2023. Get the name and stock symbols here.
The right side of the equation
BDTs are usually available in one of two flavors…
- One has to do with major long-term economic cycles…like the long period of economic prosperity we experienced after World War II.
- The other is related to historical technological revolutions, such as when cars and electricity were widely adopted in the 1920s and helped create huge booms in these industries.
At any point in your investing career, there will be at least one BDT in play that is so important that if you know Alone about BDT – and get on the safe side – almost nothing else matters.
You can ignore all the bluster and fuss in the mainstream media and just focus on BDT.
Getting on the safe side of BDT is all you need to know to make big returns while doing little work.
In the 1990s, three breakthrough technologies – computers, the Internet and cell phones – were widely adopted and “converged” to reshape the world and create a historic economic boom. These technologies have allowed us to make quantum leaps in terms of productivity and efficiency.
The 1990s were an incredible time for entrepreneurs, investors and employees. The headwinds of wealth creation were blowing.
- The benchmark technology stock index – the Nasdaq Compound – won 41% in 1995…
- So 23% in 1996…
- 22% in 1997…
- 40% in 1998…
- And then an incredible 86% in 1999.
During these boom years, the market values of leading technology companies such as Microsoft Corp. (MSFT), Cisco Systems Inc. (CSCO)and QUALCOMM Inc. (COMQ) increased by thousands of percent. Annual returns of 50% and 100% were commonplace.
Company founders have made billions of dollars and “regular” employees have made millions. They did it floating on giant rivers of wealth creation.
If ALL you knew about business and investing in the 1990s was that computers, the internet and cell phones would make us MUCH more productive and efficient, you could have made a fortune in stocks.
During these years, it does not matter whether interest rates go up or down. It doesn’t matter who won the presidential election or who won the Super Bowl. Only the BDT mattered.
BDT of the present
Let’s look at the BDT in stocks from 2015 to 2021. If you understood this BDT and invested accordingly, that was basically the only thing you needed to know.
Everything else reported by the media during this time – politics, pandemic, trade wars – was pretty irrelevant to BDT.
This BDT was the mind-boggling advances in computing power… the foundation of our digital world. Our 21st century economy – our software, smartphones, apps, websites, emails – is built on a foundation of computing power.
After growing in power at relatively modest rates in the 1990s and 2000s, computing power has begun to grow at incredible rates. … while becoming much cheaper and much smaller.
The introduction of the smartphone in 2008 fueled this megatrend… which produced massive changes in our world.
This BDT epic allowed huge new industries to spring up at the fastest pace in history… while simultaneously destroying old established businesses at the fastest pace in history.
This BDT allowed Meta Platforms Inc. (META), Alphabet Inc. (GOOGL), Apple Inc. (AAPL)Microsoft and Amazon.com Inc. (AMZN) to achieve market values of over a trillion dollars.
He sent the market values of innovative companies like Digital Turbine Inc. (APPLICATIONS), Shopify Inc. (WAREHOUSE), Block Inc. (SQ), Tesla Inc. (TSLA), NVIDIA Corp. (NVDA)and Chegg Inc. (CHGG) up more than 1000%.
Thousands and thousands and thousands of people have become wealthy from this megatrend.
Keep in mind that there were many seemingly important distractions an investor could have focused on during this time.
- You had extremely contentious political battles…
- You had a trade war between the United States and China…
- You had the COVID-19 pandemic…
The list goes on and on and on. But at the end of the day, all of these things pale in comparison to BDT when it comes to generating big returns on investment.
You now understand the importance of nailing the BDTs. You have the idea to make sure that huge favorable winds of prosperity are at the back of your investments.
The next logical question, of course, is “What is BDT right now?”
And the truth is, there isn’t just one right now – it ranges from the rollout of 5G, green energy, the resurgence of global travel, and more.
It’s about reducing the noise and getting in tune with what BDT is all about.
End of year reflections: Brian’s review of “BDT” supports much of my investment philosophy.
If you’ve been with me for a while, you know I’m a “macro” guy, and I don’t cling to the things a lot of other traders do, like the Fed, media headlines, or whatever. ‘Elon Musk most certainly is. shouldn’t have tweeted.
I look at the big picture and follow where the money is going. Historically, this has given my readers the chance to make incredible payouts, like…
- An unweighted return of 514.29% on the last position of a third in MU Jan. 2022 Calls over 22 months…
- An unweighted combined return of 230.03% on XOP June 2022 Calls over six months (including multiple closes)…
- And 51.90% on TCOM Jan 2023 Calls over approximately 11 months.
And right now, two of my colleagues and I have narrowed down our top three stock picks for 2023.
Thanks to the turbulent markets we have experienced this year…
My new stock pick is trading 50% below the peak reached earlier this year…and is back to being a great bargain.
Since this title capitalizes on one of the most powerful megatrends of recent yearsI firmly believe that once the market starts to recover, it will be one of the best performers.
Click here now for details — and to see the other two stocks you’ll definitely want to own for 2023.