The Only Acronym You Should Care About

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The investment world is full of acronyms: IPOs, ETFs, IRAs, the NYSE… they go on and on.

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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… 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, and we shared it with you some months ago. But it’s still relevant, even in (and I’d argue especially in) times like we’re in now. Not only is it a good time to do a portfolio purge like we discussed on Thursday, but also keeping a keen eye out for big moneymaking trends.

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.
  • 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.

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.

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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.

For example…

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

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.

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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.

This BDT allowed Facebook’s parent company, Meta Platforms (NASDAQ:FB), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Microsoft and Amazon (NASDAQ:AMZN) to reach trillion-dollar-plus market values.

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.

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The next logical question is “What is the BDT right now?”

And the truth is, there isn’t just one right now — it ranges from the 5G rollout, green energy, the resurgence of global travel and more.

It’s all about turning down the noise and tuning in to what the BDT is.

Eric Fry

P.S. NFTs Won’t Hold a Candle to the “MAT” Mania…

We’ve seen NFTs go viral over the past few months, but the “NFT mania” will look like a drop in the ocean compared to what crypto pioneer Charlie Shrem is predicting for “MATs”. In fact, he predicts the burgeoning MAT market will mint more millionaires than Bitcoin. Click here to learn how to position yourself ahead of what Charlie Shrem is calling “the biggest innovation in crypto history.”

On the date of publication, Eric Fry did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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.


Article printed from InvestorPlace Media, https://investorplace.com/smartmoney/2022/02/the-only-acronym-you-should-care-about/.

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