In my opinion, Dr. Doom’s 2002 book Tomorrow’s Gold: Asia’s Age of Discovery is one of the best investment books ever written.
It’s a must-read for any serious investor.
The self-proclaimed “greatest contrarian in the world,” Marc Faber, chronicles how bull markets never end… They simply move into a different asset class.
In the 1950s, American industrial stocks like American Steel were in a bull market.
In the 1960s, it was American tech stocks led by IBM.
In the 1970s, it was commodities like gold, silver, and oil…
Then came the personal computer and software revolution in the 1980s led by Bill Gates and Microsoft and Steve Jobs and Apple.
At the start of 1990s, it was Internet.
In March 1992, America Online went public. In its first day of trading, AOL’s shares closed at $14.75 trading on the Nasdaq — 28.3% above the $11.50 the company priced at.
Then the bull market started in earnest…
On Wednesday, August 9, 1995, a 16-month-old Silicon Valley startup called Netscape tried to go public.
But demand for its shares was so high that for almost two hours that morning, trading couldn’t open.
The stock, which had been priced at $28 a share, skyrocketed to a high of $75 that day and closed at $58.
Ah, the good old days…
The excitement ended in March 2000 — but as Faber points out, when the Internet bull market died, another was born. Venture capital simply shifted to other asset classes.
At the start of the millennium, it was housing, commodities, and Asia.
Faber’s thesis, though he’s a contrarian, is simple: Identify the trend and invest in it. Just make sure to sell in time.
The next investment bull market is easy to spot. And it’s already started despite the housing depression, credit default swaps, and Spain and Greece.
I think it’ll last for the next 20 years…
It’s in companies like Cracker Barrel Old Country Store (NASDAQ: CBRL) and Bob Evans Farms (NASDAQ: BOBE).
Yes, you’re reading that correctly.
Look at those names again: “Old Country Store,” “Farms.”
Does it get any more comforting, any less threatening, any more “Americana” than that?
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Dear reader, as I write this Wealth Daily today, on Wednesday, May 30, 2012, both of these stocks are sitting at or near all-time record highs:
Now, I haven’t been in a Cracker Barrel in years.
But I drive past one almost every day. The parking lot is always jammed full…
You’ll rarely see a Mercedes or a BMW in the lot. It’s always, ahem, older folks’ cars — Buick Lacrosses, Toyota Avalons, and Lincoln Town Cars.
What I’m describing is the baby boomer market.
On October 15, 2007, the first baby boomer filed to receive Social Security.
Her name is Kathleen Casey-Kirschling.
Behind Kathleen is a line of 80 million more just like her, ready to collect their share of the government-promised pie.
This is more than just a conga-line of soon-to-be senior citizens looking to get paid…
This event will have a paradigm-shifting effect on the nation — as well as your stock portfolio.
Ever since that fateful day, 10,000 baby boomers are heading off into retirement every single day…
And they’ll continue to do so for the next 20 years.
In a weak economy, declining home values, and collapsing investment returns, baby boomers will continue to pinch pennies and look for value.
Stocks like Cracker Barrel and Bob Evans fit the menu perfectly.
Profitably yours,
Brian Hicks
Check us out on YouTube!Brian is a founding member and President of Angel Publishing. He writes about general investment strategies for Wealth Daily and Energy & Capital. For more on Brian, take a look at his editor’s page.
