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Why the Dow Will Hit 60,000 (and One Easy Way to Profit)
Thursday, 04 Jul 2013 06:26 AM
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Bill Spetrino, editor of the Dividend Machine newsletter (ranked #1 by Hulbert Financial Digest), is taking a successful approach to investing with Warren Buffett’s concept of “Be fearful when others are greedy, and greedy when others are fearful.”
That’s why in 2009, Spetrino was lambasted for his bold moves in the stock market. “I was telling people to buy stocks as the market was taking a 50% hit,” Spetrino explains, “and they thought I was crazy.”
Four years later, Spetrino’s model portfolio is sitting on 161% returns, but according to Spetrino, that’s just the start.
“Stocks will rally 399% from here, catapulting the Dow to 60,000,” he explains.
Spetrino backs up his wild claims using five concrete pieces of evidence. The first is a shocking chart dating back to 1896 that details long-term market cycles.
“The stock market moves in 15-year cycles. Since 2000, we have been in what’s called a ‘bear market cycle’ — a time when stocks are flat. Right now the market is forming a base, and if you look at this chart, you will see the market is flipping over from this ‘bear market cycle’ to a ‘bull market cycle’ — a time when stocks rally.”
Editor's Note: Click Here to See the Chart and Entire Video Interview with Bill
Bill then goes on to explain how the last four “bull market cycles” have averaged gains of 399%. Therefore, if we experience similar returns, the Dow could rally from 15,000 to as high as 60,000.
Is Now the Time to Buy Stocks?
But that doesn’t mean you should go out and start buying stocks, Spetrino warns.
“All stocks are not equal. For example, last year the stock market went up roughly 13% as measured by the S&P 500. For those who don’t know, the S&P 500 is a list of 500 publicly traded companies. Now, of these 500 companies, 490 had virtually stagnant stock prices, or even went down. Only 10 companies had stock prices that went up. These 10 companies actually accounted for 88% of the earnings growth in the stock market!”
Spetrino proudly reveals that the model portfolio in his Dividend Machine newsletter has seven of those 10 companies in it. He gives credit to his “18-point system” that has guided his investments since the early 1990s.
Today, Spetrino shares his investment secrets through his Dividend Machine newsletter, which has over 40,000 members.
Cracking a warm smile, Spetrino says, “I called it the ‘Dividend Machine’ because my system is exactly that. I buy companies that pay dividends — cash to shareholders — and then compound the returns over and over again. Eventually, it becomes a machine that pays you. It never quits, it never fails.”
Editor's Note: See More Details on Spetrino's Dividend Machine Newsletter
Living in the suburbs of Cleveland, Ohio, Spetrino prides himself on having a simple life. It’s this simple life that allowed him to retire at 42 and reach millionaire status years ago.
Aaron DeHoog, the publisher of Spetrino’s Dividend Machine newsletter, states, “Bill [Spetrino] isn’t your typical Wall Street guru who uses complicated investment terms to try to impress people. In fact, he is ‘unique’ in that he is ‘quite ordinary.’ He drives a Jeep Cherokee, lives in a modest house, and talks more about his family than he does investing. I think that’s why people like him. When they read his material, they get what he is saying instead of feeling overwhelmed. Of course, his track record helps too!”
The Unique Video That Is Changing Lives
Recently DeHoog and Spetrino teamed up to do an interview to reveal how anyone can achieve 100% annual returns on their investments (during the interview they also explain why the stock market will rally 399%).
“When we were done recording,” DeHoog admits, “I was upset. I could tell those listening didn’t fully comprehend what Bill was saying. So, I spent over $20,000 animating our entire conversation into a video.”
It seems to have worked, as the interview has already gone viral with millions having access to it over just a few days.
“Part of the reason I put this together is because I owe Bill a major favor,” DeHoog confesses. “Because of Bill, I am sitting on 85% profits.”
DeHoog explains that his investment returns are actually small compared to what members of Spetrino’s Dividend Machine newsletter are receiving. Here are a few examples DeHoog shared with me from recent emails he received (last names removed for confidentiality purposes).
- Nick M. from Doylestown, Pa., claims to have profits of 143%
- Mary R. from Fenton, Mich., says she has 300% gains in one trade alone
- James C. from Ridgeland, Miss., boasts of $120,000 in profits
- Jason S. from Irvine, Calif., says he is up 128%
- Robert W. from Rogers, Ark., writes that he turned $12,000 into $17,000 in just a matter of 6 months
- And Fritz S. from Lancaster, Pa., proudly says he made $1,200,000following Spetrino’s advice
Such returns seem unrealistic — that is, until you watch the animated video and see for yourself how people can take simple steps to increase their returns.
Spetrino explains, “You have to look at the dividend growth, not just the current dividend. For example, what would you rather have — a salary of $100,000 today that grows at 10% a year, or a salary of $200,000 with no growth potential?”
Using Spetrino’s example, the person who takes the salary with 10% annual increases will get paid an additional $10.5 million ($16.5 million vs. $6 million) over a 30-year career.
Spetrino explains that there are stocks that give these types of annual pay increases (dividend increases) and have been doing so for decades.
In the video, Spetrino uses Coca-Cola as an example. A $10,000 investment in that stock 30 years ago would turn into over $500,000 if done right (and Spetrino explains exactly one easy, automatic way to do it “right”).
To watch the entire video, click here now.
A $10,000 Guarantee . . . Really?
DeHoog’s confidence in Spetrino’s Dividend Machine newsletter is so strong that he puts a $10,000 guarantee behind it. The guarantee states that if you don’t make $10,000 over the course of a year, a member can get a full refund of his or her low subscription price of $47.
“Obviously, we aren’t going to check anyone’s statements or anything like that, and I know some people will game the system,” DeHoog confesses. “But Bill and I wanted to remove all barriers for people to sign up and get absolute financial security.”
Thus far, the guarantee seems to be working. People are turning to this unique video and the Dividend Machine newsletter as they anticipate the 399% stock market rally that sends the Dow to 60,000.
“You have to realize people are still afraid to invest. 50% of Americans still aren’t invested in the stock market. Buffett, the greatest investor of all times, says to ‘be greedy when others are fearful,’” Spetrino remarks with an even bigger grin.
“Right now, Buffett is buying stocks with both hands. So are we. Just imagine how high the market will go when the other 50% of America decides to join the party.”
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