The investment world is full of acronyms: IPOs, ETFs, IRAs, the NYSE… they go on and on.
So, if you’re thinking about investing, then it wouldn’t hurt to expand your vocabulary and learn some of the money world’s acronyms, especially one called BDT.
It may be one of the most important acronyms in the world of money and business. But you won’t find it on any conventional finance website… or learn about it in any official study course. That’s because this particular acronym is one that our CEO at InvestorPlace, Brian Hunt, came up with himself.
“BDT,” says Brian, “stands for Big Dominant Trend.”
At any given time, there’s at least one wealth-creating “megatrend” that is so monumental… so impactful… and so powerful…
…that all other trends take a backseat when it comes to creating dominant businesses with soaring share prices.
The only thing that really matters is the BDT.
Brian and I put this piece together, so some of the language might seem a little divergent from my usual style.
But keep reading, and I’ll give you the most crucial BDT on my radar right now — and how you can take advantage of it.
Let’s get started.
How to Get on the Right Side of the Equation
BDTs typically come in one of two flavors.
One is related to big, long-term business cycles… like the long period of economic prosperity we saw after World War II. (More on this in a moment.)
The other is related to historic technological revolutions, like when cars and electricity were widely adopted in the 1920s and helped create huge booms in those industries. (More on this topic in a moment as well.)
At any point in your investment career, there will be at least one BDT in play that is so important that if you know only about the BDT — and get on the right side of it — almost nothing else matters.
You can ignore all the bluster and commotion in the mainstream media and simply focus on the BDT.
Getting on the right side of the BDT is all you need to know in order to make big returns while doing little work.
You probably know the 1980s and 1990s were amazing years to be an investor. But did you know the period from 1945 to 1966 was also amazing?
From 1946 to 1966, the United States experienced a historic economic boom. The Dow Jones Industrial Average skyrocketed 480%. Top companies soared more than tenfold. The price of desirable real estate soared. The river of prosperity flowed so strongly during that time that you could jump in and float your way to success.
There’s a simple reason why this period was such an amazing time to be an investor… and it won’t surprise you. It was the years after World War II ended. We transitioned from a time of widespread destructive conflict to a time of peace.
WWII suffocated the dreams and productive capacity of people all over the world. When the war ended, tsunamis of productive capacity and ambition were unleashed across the world.
Millions of soldiers returned home and started families. The new households bought the innovations of the day, like refrigerators, televisions, and dishwashers.
Unleashing all that pent-up demand and activity produced a worldwide boom that benefited American industry in a huge way for a long time. Investors went along for the ride.
That is a BDT.
The rising tide of post-WWII prosperity was so powerful that every other factor affecting stock prices was pitifully small by comparison.
It didn’t matter what interest rates were doing, what the dollar was doing, who was president, or any of the other common factors that can affect stock prices.
All that mattered was the BDT.
That’s all you had to pay attention to. That’s all you had to get right in order to make big investment returns.
Or take the 1990s, which I mentioned earlier.
In the 1990s, three revolutionary technologies — computers, the internet, and cellular phones — achieved widespread adoption and “converged” to reshape the world and create a historic economic boom. These technologies allowed us to make quantum leaps in productivity and efficiency.
The 1990s were an incredible time for entrepreneurs, investors, and employees. Gale-force tailwinds of wealth creation were blowing.
- The benchmark technology stock index — the Nasdaq Composite — gained 41% in 1995…
- Then 23% in 1996…
- 22% in 1997…
- 40% in 1998…
- And then an incredible 86% in 1999.
During these boom years, the market values of top technology firms like Microsoft (NASDAQ:MSFT), Cisco Systems (NASDAQ:CSCO) and Qualcomm (NASDAQ:QCOM) climbed by thousands of percent. Annual returns of 50% and 100% were commonplace.
Company founders made billions of dollars. “Regular” employees made millions of dollars. They did so by 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 WAY more productive and efficient, you could have made a fortune in stocks.
During those years, it didn’t matter whether interest rates were heading higher or lower. It didn’t matter who won the presidential elections or who won the Super Bowls. All that mattered was the BDT.
BDTs of the Present
Next, let’s look at the BDT in stocks from 2015 to 2021. If you understood this BDT and invested accordingly, it was essentially the only thing you needed to know.
Everything else reported on by the media during that time — politics, pandemic, trade wars — was fairly irrelevant compared to the BDT.
This BDT was the mind-blowing advancements in computing power… the bedrock of our digital world. Our 21st-century economy — our software, smartphones, apps, websites, email — rests on a foundation of computing power.
After advancing in power at relatively modest rates in the 1990s and 2000s, computing power began advancing at incredible rates… while at the same time becoming much cheaper and much smaller.
The introduction of the smartphone in 2008 poured rocket fuel on this megatrend… which produced massive changes in our world.
This epic BDT enabled huge new industries to spring up at the fastest rates in history… while simultaneously destroying old, established companies at the fastest rates in history.
It sent the market values of innovative firms like Digital Turbine (NASDAQ:APPS), Shopify (NYSE:SHOP), Square (NYSE:SQ), Tesla (NASDAQ:TSLA), Nvidia (NASDAQ:NVDA), and Chegg (NYSE:CHGG) up more than 1,000%.
Thousands upon thousands upon thousands of people grew 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 U.S. and China…
- You had the Covid-19 pandemic…
The list goes on and on and on. But at the end of the day, all those things paled in comparison to the BDT when it came to generating big investment returns.
Now you understand the importance of nailing BDTs. You get the idea of making sure huge tailwinds of prosperity are at the back of your investments.
The next logical question is “What is the BDT right now?”
As I promised above, I’m going to show you the most crucial BDT on my radar right now.
A new revolutionary tech projected to create $56 trillion in wealth is expected to disrupt just about every industry.
That technology is 5G.
5G has the potential to kick off a whole new wave of innovation across the most promising sectors of the economy: autonomous vehicles, AI, robotics, virtual and augmented reality and much, much more.
Now, 5G isn’t an entirely new phenomenon. But this technology is still in the early stages of its global deployment…and in even earlier stages of its integration with cutting-edge enterprise technologies like Edge computing or “Cobotics.”
That’s why I’m convinced 5G is going to launch a different kind of global movement unlike any we’ve seen in the past…
With the potential to create huge profits, of course.
The details of which are far too lengthy to include in this email, but in my 2021 Wealth Acceleration Summit, I’ll lay it all out for you.
P.S. Over the years, I’ve found my readers 41 1,000% gains. Now I’m naming a new tech play that could be #42. Click here to learn more.
Eric Fry is an award-winning stock picker with numerous “10-bagger” calls — in good markets AND bad. How? By finding potent global megatrends… before they take off. In fact, Eric has recommended 41 different 1,000%+ stock market winners in his career. Plus, he beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a contest. And today he’s revealing his next potential 1,000% winner for free, right here.