Let’s begin by asking the hard questions …
Is the worst selling behind us? Are we now poised for the markets to continue climbing? Or have the last few weeks marked the end of this historic bull run, and things are now unraveling?
In answering these questions, let’s start by recapping the recent volatility to get us all on the same page.
On Christmas Eve, the Dow fell 653 points — the worst Christmas Eve performance on record. It closed at its lowest level since September 2017. The day after Christmas, the Dow sharply rebounded, gaining 1,086 points. That was its largest single-day increase in history.
The following day, the bears returned. The S&P 500 dropped 2.8% … only to stage an afternoon rally to finish the day up nearly 1%. It was the biggest upward reversal since May 2010. It was also the ninth time during this quarter in which the S&P 500 reversed an intraday move of at least 1%. That’s the most since 2011.
The swings continued last Friday with the Dow making a 400-point intraday reversal. It finished the day down — after changing directions 19 times.
The volatility has been nothing short of dizzying.
Pulling back, as we stand today, the NASDAQ is officially in a bear market (defined by a 20%+ pullback from recent highs). Meanwhile, the Dow and S&P are off 14% and 15% from their respective highs.
So, where does this leave us? Has this been a healthy correction in an ongoing bull market? Or are we standing at the cusp of something far worse? More importantly, given the answer, what does that mean for your portfolio positioning?
***What if you didn’t need to struggle with that question in order to make significant wealth going forward?
Let me briefly digress …
Have you ever known someone who seemed to luck into investment wealth by accident? Through no real effort of their own — much less any outstanding investment process — they stumbled into riches?
Perhaps it was your brother-in-law who made millions from a tip to buy housing stocks during the 2002 – 2007 real estate boom … though he didn’t know the first thing about real estate.
Or maybe it was your neighbor who made a fortune in gold mining stocks during the historic gold bull market from 2002 – 2011 … although she knew nothing about the mining industry.
Or possibly it was your uncle who retired early after taking a gamble on a handful of internet stocks in the 1990s Internet boom … though he had no real understanding of what the companies actually did.
There’s a common thread running through the above examples. A powerful market force that enables unsuspecting investors to make life-changing wealth. Accidental fortunes. All because the investor did one thing right, whether intentional or not …
He invested alongside a tailwind.
“Tailwind” refers to a massive trend. Oftentimes, one that reshapes our culture, way of life, and by extension, our world.
These tailwinds come in different forms. A new technology that transforms our everyday routine … A deregulation that creates a new industry almost overnight … A left-for-dead asset class that finally snaps back from a prolonged, record-setting low …
The investor who spots these tailwinds early can make a literal fortune. Consider the wealth created by past tailwinds.
In the mid-to-late 1990s, practically any stock related to technology or the internet was enjoying massive growth.
From 1995 to its circa-2000 peak, Microsoft’s stock climbed over 1,450%. Over the same general period, Cisco shot up roughly 3,900%. And Qualcomm? 5,900% (in 1999 alone, tailwinds pushed it 2,619% higher).
Even if you’d invested in nothing but the benchmark technology stock index, the Nasdaq, the technology tailwind of the late 1990s would have quadrupled your money.
***But the whole market was climbing during those years. If the S&P goes flat or down in 2019, won’t that offset a tailwind?
That’s the powerful thing about this style of investing — the gains come independent of the broad stock market.
To illustrate, consider the tailwinds that blew through the gold mining industry from 2000 through 2012. During that period, the S&P 500 went nowhere. It actually lost about 2%. Meanwhile, the gold royalty company, Royal Gold, saw its stock climb over 2,400%.

Or we could look to the early 2000s, comparing the S&P with homebuilding stocks.
From roughly 2000 through mid-2005, the S&P lost 16%. Meanwhile, the home building companies Toll Brothers, NVR, and Meritage climbed roughly 1,000%, 1,800%, and 3,000%, respectively.

The right tailwind at the right time can create an investment fortune. You don’t need to be the world’s savviest investor. You don’t have to be a master of fundamental or technical analysis. And as we just illustrated, you don’t even have to get the direction of the overall stock market correct.
All you need to do is identify the tailwind, then invest in a handful of companies positioned to ride the trend higher. This way of investing is one of the simplest and safest ways to create life-changing wealth.
***Here at the beginning of 2019, we see several investment tailwinds that will mint a new group of millionaires over the next decade.
While there are more, some of the main trends we’re watching are:
5G internet connectivity — The next decade will be built on connectivity. The majority of the technological advancements we’re going to enjoy (artificial intelligence, self-driving cars, the Internet of Things) will require lightning-fast, consistent internet connections. 5G is the dynamic wireless infrastructure that’s going to make this possible.
Self-driving cars — The old science fiction fantasy of a driverless car is practically here. Every major automaker is pursuing this technology. Whether you realize it or not, it’s going to change how we travel and live. And in doing so, it will add $7 trillion to the global economy.
Legalized marijuana — Legal marijuana is, and will remain, one of the biggest investment opportunities in the world. Marijuana has been outlawed most everywhere for decades … but now a wave of legalization all around the world is changing that. This is creating huge new markets and it will produce massive stock winners.
Robotics and artificial intelligence — Over the next 1-2 decades, our day-to-day lives are going to radically transform due to the influence of robotics and artificial intelligence. These smart machines are going to affect every industry, business, city, and household in life-changing ways. It’s also going to add $15.7 trillion to the global economy by 2030, and make fortunes for certain investors.
Continued growth from China — Don’t be misled by fears of slowing China growth. The coming years will see explosive wealth creation for the companies dominating China’s social media, video gaming, and internet sectors. If you missed this growth in America’s top tech companies, this is your second chance … only now the opportunity is in a country that’s four times bigger than the U.S.
Here at the InvestorPlace Digest, we’ll be bringing you news of these tailwinds throughout 2019 and beyond. We’ll highlight developments and turning points — but more importantly, we’ll bring you commentary from our team of world-class analysts in order to help you grow your wealth. After all, we’re proud to feature some of the most respected investment experts in the world under our banner.
So, let’s return to our original question. As we look to the year ahead, is the worst over? Or is it just beginning?
Well, as I hope you’ll now agree, perhaps there’s a better question to ask …
How will you take advantage of the tailwinds that will create massive wealth over the coming years — regardless of what happens in the broad stock market?
We’re excited to do our part in helping you answer that question.
Here’s to a profitable 2019.
Jeff Remsburg