We have all heard the saying “History repeats itself”, and in many cases that is absolutely true. But, today, I’m going to break down the timeline of investment options and show you why, in this case, history will not repeat itself. The future of Investing is going to be drastically different and I want to show you what has led us to this point and what I believe will help you build true wealth through the coming changes.
We have all heard the saying “History repeats itself”, and in many cases that is absolutely true.
Today, I’m going to break down the timeline of investment options and show you why, in this case, history will not repeat itself.
The future of Investing is going to be drastically different and I want to show you what has led us to this point and what I believe will help you build true wealth through the coming changes.
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-- Make sure to subscribe so you never miss an episode!
Key Takeaways:
The Birth of the 401K (1:39)
Mutual Fund 401K Takeover (2:10)
Death of Pensions (2:42)
Mutual Fund Fee Expansion (2:53)
Dotcom Bubble Hits Mutual Funds (3:33)
The Great Recession Hits Investors (4:06)
A Market Ready for Correction (4:30)
Centralized Systems (5:15)
Monetary Policy 2 (7:15)
Monetary Policy 3 (7:49)
Monetary Policy 3 Changes the Game (8:26)
What does this all mean? (9:48)
The System is Moving Away From Investors (12:25)
How do Solomon Investors Build Wealth? (13:58)
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-- DISCLAIMER: Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses. No communication by Boron Capital, LLC Inc. or any of its affiliates (collectively, “Boron Capital, LLC™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing in this episode is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.
- This is a Solomon Investor podcast. I'm your host, Blake Templeton, and today, I'm going to demystify building wealth in the middle of a chaotic world. No money manager in the public market is going to be able to read the crystal ball. If you have not subscribed yet to our YouTube channel, click subscribe right now, show me some love, like the podcast, like the YouTube channel. I want to build a relationship with you as we build your future. So I'm going to give you a little history for a second. It used to be ran for the capitalists, it used to be ran for those who've got lots of stock, We're going to try to help you out. Not anymore. Most of us started our investment career in a 401K, an IRA, or a pension fund. Most people didn't just start throwing money into a Robin Hood app, or, just start, really running it more like a casino. It was started by throwing a little bit every single week into your 401 or your pension. In the '70s and early '80s, this 401K world started. When it started, the 401K was more for a corporate head, a corporate tax dodge. It was so that the corporation could actually have a tax benefit, and then this so happened to benefit the actual employees as well. It's kind of like if you just threw everyone in the conference room and you gave him a big stack of papers and it's like, hey, pick which plan you want. And it was confusing and it was hard to understand and you weren't sure what your money was going into. Then, in comes the mutual fund world. The mutual fund world, the brokers came in and said, man, this is opportunistic like crazy. We're just going to come in and swoop in into these plans. And in the mid-90s, almost every single employer had a 401K as the vehicle that all the mutual fund companies came in and saturated. So now everyone's got mutual funds inside their 401Ks. The pension world, that really fizzled out into the '90s and the 2000s, but the last people who really have pensions are baby boomers right now. Now, as the '90s progressed, the fees became so unregulated they became truly just ostentatious. The fees got higher and higher and higher, but most people didn't notice. They didn't notice because they were making so much money in the mid-90s. You could literally have been in three or four or five years and potentially doubled or even tripled your money in the stock market. If you hadn't found yourself in this story yet, hold on, it's coming. So, in the '90s you either had a pension or a 401. In the 2000, when this dot-com error happened, everything fell out. What that really meant was all the gains, all the interests that had been made up until that point, most people lost it. And then, a lot of people lost more than their interests. They started losing the principal. 2001, 2002, some hard years, but then we have a couple of good years, 2003, four and five, couple of good years in there. Then comes 2008. The great recession. It actually wasn't the real estate bubble. It was the centralized banking bubble. It was the unregulated loans where if you had a breath, then you could get a loan. So, a long story short, it was the unregulated centralized system. That's what was broken. Now, fast forward, 2012, everybody starts getting into this bull market, they start making a little bit of their money back, everybody kind of loosens up. And then you had this nice eight-year run from 2012 to 2020. And it looks great. The velocity inside the stock market was growing and growing. However, most people weren't looking at the velocity of the GDP, the actual revenue of the United States as a country. It had been flat since 2005. It hadn't wrote 3% since then. We've got a problem on our hands. COVID was just the nail in the coffin. It was just the nail that burst the bubble. COVID didn't cause everything, just like the real estate market wasn't the problem. It was the centralized system. Well, 2020 was a centralized system, again. The centralized stock market. We called it diversification. We called it maturity, we called it being wise. We called it doing right thing. However, it was a centralized system, meaning the centralized system. It's a big bathtub of what? Stocks. So, when COVID happened, when the great recession happened, why did the entire stock market get corrected? Because it was all centralized. Everything effects everything. Now, it didn't use to be that way. Back in the early 1900s, everything was its own entity. But not anymore. Emotionally, everything is actually connected. And so a stock of Boeing could actually affect a stock that has no nothing to do with Boeing. Right now, what you're seeing is a system that has continued to fall. The 2008 was centralized banking system, and then the 2020 was the centralized stock market system. It's the same system. The fed, it's the actual ones who run the actual money supply, it's the one who's creating the monetary policy, it's the one who actually is in control of what's going on right now. It's the one who created MP3, Monetary Policy Three. Monetary Policy Two was what happened in 2008, which essentially was buying mortgage-backed securities on a regular basis. Now, buying the mortgage-backed securities literally helped everyone in a stimulus of the economy, get everything moving again. But what was different then was that there was money, there was revenue, there was a lot of things going for the country. Right now it's not that way. Everything had a inverse. We decided to do Monetary Policy Three after we had 40 million people unemployed, after no-one is working, after we've shut down all the companies, after literally we've turned the GDP of the country on zero. Then we decide, now let's print money. This printed money is going everywhere and the difference in Monetary Policy Three is that it actually is going to wherever they want to put it. Okay. Why that is so important for you right now is because Monetary Policy Three changes the game. It changes everything. Nothing that used to happen is going to be happening. History will not repeat itself. Everything is shifting, there's variables now that have never been in the market. They're literally able to put money wherever they want. It's unregulated. They can literally give money to different banks, I mean, different banks. They can actually put money in different companies. Apple can get printed money and literally it's just money going to Apple. They literally are putting, they're actually buying the stocks of different companies. They're literally giving aid all over to actually fill gaps. Now, what are they doing that? Well, they've come to this position where they're thinking we've inflated the value so much, that potentially lots of companies are too big to fail. So the biggest companies, maybe we should just go give them some more money just in case. It's really ludicrous. What does this mean? Well, in the real world, there's real value. It means that there's tangible value. So if you are going to invest in the real world, I'm going to call it the private market. If you want to invest in the private market, then you would literally want to actually say, what's the value, what's the revenue of that company? And the revenue helps you determine real value. Well, let's just take a company like Apple or Amazon. Amazon's a great company to give the example of. Their revenue's 250 billion, and yet their margins are 5%, 12 billion. So, they can't even pay out 2% in dividends to their investors, so they don't pay any dividends. But there's a market cap right now of 1.5 trillion. So it doesn't even make any sense. So this is what's happening, is that money is just getting pumped in by the public into these companies. And so then Monetary Policy Three decides, we needed to go fill the gaps and just make sure 'cause if all that money needs to come out... There's not money to pay everyone. As a matter of fact, that reminds me. I've got so many goodies I want to hand you guys, I want to give you. Pull out your cell phones. I want to give you something free right now. Pull out your cell phones and I want you to text Solomon to 31996. I have a little e-book that is so powerful on how the wealthiest people have built wealth in chaotic times. You and I want to follow key principles of the most wise people and King Solomon was one of those people. So again, pull out your cell phone, go to your text, and then you're going to send me a text. And you're going to text the word Solomon, S-O-L-O-M-O-N, to the phone number, 31996. So here's the point: we're going into Monetary Policy Three and you've got to know what to do. Kings don't get their hands dirty. Kings don't get worried, Kings step up and rise up. And it's not going to be in the public market because the things that are going to happen right now in the public market are going to shift everything for those who are in the public market. And here's the number one thing that's going to shift. You got to understand that if everything is now pushing buttons and pulling levers that have never been done before, then it's not going to follow the same market cycles. No money manager in the public market is going to be able to read the crystal ball. Right now they're going to be doing things to the betterment of all of society, to the betterment of the entire public citizens of America. Not for the investors. It used to be ran for the capitalists, it used to be ran for those who've got lots of stock. We're going to try to help you out. Not anymore. For instance, if they devalue currency, whatever currency that you have, you're holding to see if you can hedge with currency, yeah, they might just wipe you out. Not because they want to wipe you out; just because they have a different agenda now. If they're going to restructure the debt of the bond market, if you have bonds, then they're just going to recalibrate and kind of forgive the bonds as if they never happened. If they do that, that's going to hurt all mutual funds. It's going to hurt all different, there's so many ripples that it's going to affect. They're going to be doing things they've never done before. As a Solomon investor, as a King in the King's court, we activate our wealth, we build wealth, how? In the private market. In the private market, and so what I want you to do is I want you to remember that you've got to be in the private market. You've got to activate your wealth in the private market. And again, one more time, if you have not, pull out your cell phone, text 31996, the word Solomon, so I can give you some goodies right now that are going to help you. A seven-step principle of activating your wealth like the wealthy, how they move their money into the private market for sustainability, to get out of chaos, to build wealth, to compound their wealth, to fortify their walls, to build a domination. You've got to do what I'm telling you right now to actually have sustainable wealth. The history lesson hopefully helps you see that there's a new horizon, there's a new ecosystem. It's called the private market. You've got to be in it. You've got to have your money building wealth for you. That's what Solomon investors do. It's time now to activate your wealth in the middle of chaos, it's time to now double down where? In the private market. It's time to put your eggs into the private market. As everyone says, don't put your eggs in one basket, no. Diversify those eggs. If you had Fort Knox as your house, you wouldn't diversify and put all your valuables in different places, you'd put it all in Fort Knox. And that's what the three-dimensional investments in the private market are. You put them all in one place in the private market, because that's what stands the test of time. So I've got so much more on that to open up for you, explain how three-dimensional investment works and so forth. But today I want you to take away the nugget: history will not continue to repeat itself. You've got to take action right now and the first step as a King is to, is to take action in building wisdom, take action in understanding how a Solomon investor works. Take action in actually applying these principles in the private market by activating your wealth. And that's how we prosper in a chaotic time. Again, if you have not, like the video, share the video and I look forward to seeing you on the other side. Blessings on you guys, talk soon.