Hello my name is Doug Loewen and I am so excited
to I have got some great things to share with you today. I want to talk to you about wealth
cycles. We have all heard before you buy low and sell high but for how many of you is that
a reality. How many of you actually buy at the right point and sell at the right point.
Well wealth cycles things and assets go up in price and they go down in price and if
you don’t buy at the right time you are in big trouble. So I want to talk to you about
a few different asset classes. The first one that you have all invested in
is cash whether it is sitting in a GIC, in a bank account or in a money market fund cash
is a losing proposition because of the amount of the money that is being printed our currency
or cash is going down in value steadily so that is a guarantee to lose. Your cash will
not keep up with the rate of inflation that is the first bubble that is being created
in today’s economy. The next one is the stock market also one that many of you have probably
invested in one time or other and if we look at the stock market between 1928 and 1982
the stock market had very, very consistent growth about 300% that could be sustained
and that was very normal growth. But you see what happened between 1982 and 2000 the stock
market grew by 1200%. The problem is that the factors that sustain the stock market
namely GDP growth and corporate earnings were not there to sustain that therefore you had
a bubble. The third area is real estate again most of
you probably own your own home or maybe have an investment property or have invested in
real estate at some point. Normal estate growth is approximately 5% per year depending on
where you are at. Now if you are in a healthy area for me for example between 2005 and 2007
my home doubled in value. The problem with that is that the factors that support real
estate growth are jobs, income growth and population growth into that area that was
not seen in the areas that real estate went up like that therefore real estate was in
a bubble a big bubble. Now what happens to bubbles they get inflated
and inflated and inflated and inflated until what happens is they pop. Well the last area
is commodity that is the last of the four asset classes. Commodities generally today
I want to specifically talk with you about gold. Between 1974 and 1980 gold went up 2600%
this was after gold was removed as a backing to a dollar they just went through the roof.
How many of you would have liked to invest in gold at $35 an ounce and how do sitting
in the $850 an ounce six or seven years later. Between 1980 and 2000 gold dropped about 50%
again not the time to be in that because of the wealth cycle and it was the time to invest
in the stock market at that time. Today gold had risen about 500% in the last 12 years
and it is not done yet but I what I want to talk to you about it is there is four bubbles.
Each one of these is in a bubble. The last thing that the government wants is for these
balloons to pop. They do not want them to pop because that loses confidence people would
no longer vote that government in so what is the government going to do to sustain those
bubbles and just make sure that they do not pop. Well they have got their own bubbles. The first one is public debt. The government
will borrow and borrow and borrow until they can no longer borrow so they are going to
make sure this public debt grows to sustain the bubbles in our asset classes and the other
one is another large, large bubble massive bubble of printing money. See what has happened
is quantitative easing this is fairly new definition a new term on the books quantitative
easing is printing of money. The government has the power to print their own money and
they will just continue to print and print and print so what we have here is we have
two very, very large bubbles and the government is going to continue to inflate these until
they can no longer and until these one themselves will pop and that is the day I do not want
to see but it is coming because in order for them to make sure that the people do not lose
confidence and the bubbles pop so the cash bubble pops, next the stock market bubble
pops, when suddenly the real estate market as we have already seen it pops and then the
commodities market pops that creates problems so what do you need to be aware as an investor
you need to be aware of the correct time to enter an asset class when is the time to buy,
when is the time to sell. The most exciting thing for me is that the ultra wealthy they
do not invest in asset class they go down in value. I had a billionaire say to me once
the reason I invest in rarity commodities of rarity which is certain commodities which
I am not going to talk to you about today is because they don’t go down in value. How
would you like to that instead of having to worry about the correct time to buy and sell
you invest in things because they don’t go down at all? Thank you so much for watching. I encourage
you now to go to www.freedomps.ca where you can join the freedom fighter network. Here
you will get weekly articles and videos encouraging you on your road to freedom not only in your
wallet but also in your whole life as well you will be able to download a copy of 5 key
steps to abundant financial freedom. This is a free chapter from my up and coming book,
very excited so take care and god bless.