MAKERS MILLIONAIRE

4 Stocks That Will DominateThe New Economic World Order

If you invested in the Dow in 1929, you would have netted a zero return over the 24 years that followed. Everything from retailers to automakers to chemical companies to banks went nowhere. Instead, buying in late 1932, after the great crash, would have been very profitable.

But not all was doom and gloom. In fact, the Great Depression was a time when those who knew what they were doing made enormous financial gains… and the very nature of the depression worked in their favor.

While most companies were cutting back on everything from staff to marketing, a few companies ramped up advertising budgets and production and leapfrogged light-years ahead of their competitors. They watched some of their competitors go bankrupt. They swallowed others up whole.

They became cash-rich dividend kings that instigated aggressive marketing strategies and expansion plans. Such kings included Procter & Gamble, Camel Cigarettes, Borg Warner, Bethlehem Steel, and Skelly Oil (now Chevron/Texaco).

Stockholders smart enough to first invest in these companies, and then reinvest their dividends, ended up reaping untold rewards. Because even when the price of their stock went down, their dividend enabled them to buy an even greater amount of the company’s shares. This rewarded them with an even bigger dividend, which then allowed them to invest in more shares. And when the market finally turned up again, they won… and they won big!

Now, there are companies that will again become cash-rich dividend kings of the 21st century...

The 21st Century’s Big DepressionWinners Just like in the 30s, a “survival-of-the-fittest battle” is coming that will determine the market’s new leaders for decades. It won’t be enough anymore for companies just to come up with a revolutionary new technology or product. They will have to know how to market and distribute it. They will have to know how to connect and collaborate with customers and partners. They will have to be quick to take advantage of disruptive new technologies, radical new business models, economical new supply chains, justin- time fulfillment processes and new, leaner manufacturing methods.

Most American companies will fall by the wayside… left to wring anemic growth out of aging, waning Western economies.

But there are a particular set of American “El Dorados” — golden companies — we believe will rise to the challenge. They will far outperform anything else because they will have the money, the marketing resources, and the distribution channels they need to successfully penetrate the emerging mega-markets of the East.

This is where the majority of global growth will come from in the decades ahead — emerging markets. And each one of the corporate El Dorados we’ve identified will dominate the new economic order. Each is already well on its way to achieving deep market penetration in the emerging economies. Each boasts some of the strongest and healthiest corporate balance sheets around.

Thanks to their unmatched know-how, experience, and breadth of resources, revenues and profits that our corporate El Dorados will spin from these Eastern markets in the years and decades to come, they will make the Western profits of their past look anemic by comparison.

What’s more, each of these companies has long histories of rewarding investors with outstanding returns… outperforming almost every other asset class, season after season…

But before we delve into details and ticker symbols for each of these companies, let’s briefly explore what’s happening demographically in the East…

Greatest Money-Making Opportunity of Your LifeThe reality is: The East, with the exception of Japan, has us beaten in the numbers game. It is the most densely populated place on earth (as the dark blue areas show on the map below).

It’s a simple, unquestionable fact. They have more feet on the ground. And those feet walk into cities — and into their peak spending stage — while American, European, and Japanese Baby Boomers head into retirement.

Few people realize that countries like Japan, Russia, Germany, Spain, Italy, and Greece could lose up to half their populations in the next 50 years. America and Europe will become the world’s new retirement communities. The U.S. Census Bureau has shocking proof: One in eight Americans were elderly in 1994. By 2030 that statistic will be one in five!

450 million Baby Boomers around the world — 108 million in America alone — are heading into retirement… the time in their lives when they earn less and spend less. After being the economic engine that drove world growth for generations, that growth will become slower.

To fill the gap we leave as we gray, eastern countries and developing nations will rise explosively. Millions of people will migrate into cities. India, Indonesia, Malaysia, Vietnam, and Thailand are places you’ll find big opportunities and bigger profits in the coming years.

Eastern Populations Take the Highway into Town

The team at Trendwatching.com calls this explosion of people moving out of rural areas and into towns “Citysumers.” And according to various sources, like the United Nations, McKinsey & Company, and Foreign Policy, India will have more than 68 cities with more than 590 million Citysumers by 2030.

Also, more people in the west are choosing not to have children because of rising financial costs and greater career ambitions. This means that western numbers won’t come close to the levels you’ll see in the East. Not in our lifetime. Not in our grandchildren’s lifetime either.

The result: a slowdown in economic activity in the West... and a rapid increase in economic activity in the East. The charts below, which forecast the spending cycles ahead, illustrate these trends very clearly.

Between Now and 2025, Spending Will Drop

At the Same Time, Spending in the East Will Increase…

These charts reveal one of our simplest and most powerful forecasting tools: The Spending Wave. To create it, we move the number of people born in a country (adjusted to include any immigrants) forward by 46 to 50 years. That’s when they’ll be at their peak spending age…

And India has a clear advantage in the next two decades because its population is moving into those peak spending years during that time… and they’re moving into the cities where they can spend all they want.

An Important Caveat to Note…There is no doubt in our minds that the East holds great profit opportunities for savvy investors like you. But first, a storm is due to lash eastern economies.

You see, these emerging-market countries have high exports to the U.S. and Europe and commodity-based economies will initially react to the current western slowdown and a crash in China. They also have internal issues to overcome. But as their strong demographic trends gather pace, and as they recover from the coming crash, they’ll quickly decouple from the graying oldtimers and reach their explosive potential.

We’ll be ready, waiting to grab the profits when the boom happens. So, let’s reveal the corporate El Dorados that will show us the money when the time comes...

Corporate El Dorado #1What do Braun, Eukanuba, and Duracell have in common? They are all among the more than 80 leading brands our first El Dorado makes and sells to more than 4.4 billion people around the globe.

Beauty brands like Head & Shoulders, Gillette, and Old Spice. Health and wellbeing brands like Pepto Bismal, Oral-B, and Vicks. Household care brands like Duracell, Charmin, Bounty, and Pampers.

All the products that people heading into their peak spending years (between the ages of 40 and 50) need and buy. More importantly, they’re all the products newly urbanized people need… and can afford to buy. Look at these demand curves…

People spend more on personal-care items… and more on pets… when they can afford them. They can afford them when they’re at their highest earning and spending phase.

In the U.S., at least one quarter of the population will be moving down the backside of these curves through the early 2020s, spending less on these types of items.

But here’s the thing: Populations in the East – Asia in particular – are heading UP those curves. And those curves will be steeper because of the sheer number of Indian, Malaysian, Thai, Vietnamese, and others moving into the “industrialized” stage of economic development.

In India, Proctor & Gamble (NYSE: PG) is taking advantage of that trend. Its Tide laundry product is washing through the nation.

According to the company:

About 80% of consumers in India wash their laundry by hand. With limited laundry detergent budgets, most Indian consumers settle for the lowest-priced powders… [So] P&G launched Tide Naturals in India in December 2009… at a price 30% lower than regular Tide. P&G now offers laundry detergent that is affordable for more than 70% of Indian consumers.

Through Tide and Tide Naturals, P&G engaged in a price war over detergents in India with marketing giant HLL. Neither side gained against the other, but both picked up market share as smaller competitors bowed out of the space.

And men in India prefer Gillette Guard seven to one to their double-edged razors.

As more and more Indians urbanize, more will have money to buy Tide and their preferred razors. Once they use P&G products, the company can introduce them to other products they offer, opening the doors of a global “hypermarket.”

Now that Indian consumers are connecting with, and can pay, Amazon and other ecommerce sites through their smart phones, companies such as P&G have an even broader market of potential clients. This new trend allows Proctor & Gamble to reach Indian consumers even before they make the final move to cities.

Beyond the Indian market, the company has been around since 1837 and has one simple goal: to make consumer goods available, at affordable prices, to as many customers as possible. It has taken this very seriously, and now offers products in more than 140 countries around the world, reaching more than half the world population. On the financial side, P&G has paid a dividend since 1890. What’s more impressive is that the company has increased its dividend for 63 consecutive years, making it a reliable income creator for investors.

In addition to paying consistent dividends, P&G has also bought back shares, and expects to return billions more to investors in the years to come.

Combining international growth, strong corporate management, and a keen focus on the bottom line, Proctor & Gamble is well positioned to survive the shakeout and lead the market during the next economic season.

Action to Take: Watch Proctor & Gamble (NYSE: PG), but do not buy until we tell you to.

Corporate El Dorado #2Philip Morris International (NYSE: PM) is like Proctor & Gamble, but on steroids. The company began operating in the U.S. in 1847, and today sells cigarettes in 160 countries, but not the U.S.!

More than a decade ago, Philip Morris and Altria split, with PM focusing on international cigarette sales while Altria retained the domestic market.

The company sells more than one trillion cigarettes every year, with more than a quarter of those sold in Asian countries like India, Vietnam, Thailand, and Malaysia.

The Philip brands include:• Basic• Benson & Hedges• Cambridge• Chesterfield• Commander• Dave’s• English Ovals• Lark• L&M• Marlboro• Merit• Parliament• Players• Saratoga• Virginia Slims

The thing is, emerging countries are increasing their demand for tobacco products as their consumers age. Look how cigarette demand peaks for people in their 40s and 50s (their peak spending years).

The booming Asian populations are trending toward their peak in spending, which should make Philip Morris’ dividend rock solid. And it gets better.

Keeping up with changing times, the company introduced a cigarette alternative, the iQOS, which electrically heats - but does not burn - tobacco. In May 2019, the FDA cleared the device for sale in the U.S.! Consumers buy Heatstick replacements for the devices. As more countries try to dissuade consumers from cigarettes, alternatives such as iQOS should thrive.

PM has also started a life insurance firm that offers discounts to smokers who quit... following the growing trend in developed countries toward smokeless societies.

With a dividend that recently rose over 6%, this is a company to keep in your portfolio after the crash.

Action to Take: Watch Philip Morris (NYSE: PM), but do not buy until we tell you the time is right.

Corporate El Dorado #3:“I’d like to teach the world to sing, in perfect harmony…”

We all know the song, and the world knows the product. Coca-Cola is synonymous with soda, and people across the globe enjoy more than 1.6 billion servings of Coke every day.

The company listed on the New York Stock Exchange on September 5, 1919 and has been a staple of American life for more than a century. But even though the old-line company is still called Coca-Cola, don’t call it a soda company!

In addition to the fizzy water that we all grew up with, Coca-Cola also sells juice, milk, energy drinks, and water… lots and lots of water!

While developed markets are a dog-eat-dog world for Coke and its competitors, the Asian markets are a land of untold opportunity. In late 2017, Coca-Cola increased sales in India by double digits, which is amazing for a company that’s been in business for over 130 years!

Recently the company divested much of its bottling divisions, which streamlined operations. Coca-Cola also acquired Costa Coffee company, which gives it yet another line of products to offer.

Action to Take: Watch Coca-Cola (NYSE: KO), but do not buy until we tell you the time is right.

Corporate El Dorado #4Just like the other members of this “Shakeout Winners” club, Johnson & Johnson (NYSE: JNJ) is a name you grew up with. And like the Coca-Cola song, we also all know the one that goes, “I am stuck on a band-aid…”

And right in line with the others, JNJ has raised its dividend for over half a century. During boom and bust times, the company has rewarded investor loyalty with cold, hard cash.

Here’s just one story of why Johnson & Johnson will make you money during the years ahead:

Lilia Dado is a 50-year-old midwife working in the Philippines. Over the years, she’s helped deliver more than 900 babies, given prenatal care to hundreds of young mothers, counseled countless teens about reproductive health, and organized dozens of programs to teach her community about immunizations and disease prevention… She is also a graduate of the Midwives Leadership Development Program, which is a training program that the Integrated Midwives Association of the Philippines and Johnson & Johnson created in 2004.

The more people Lilia reaches through her work, the more people will become familiar with Johnson & Johnson and will use its products. More people using its products means more money on the bottom line. That, in turn, means more money for investors – through dividend payouts and capital gains.

The same rolling-stone effect applies when Johnson & Johnson gets involved with more community programs in more countries. This is something it focuses on. In one year, it supported 650 programs in 50 countries, including…

• Teaming up to deliver disaster relief in Asia-Pacific• Preventing teen pregnancies in Brazil• Helping Argentinian children cope with cancer• Employing Hungarians with mental illness• And treating oral thrush in Kenya

If you can imagine it, chances are Johnson & Johnson has something to do with it.

Ultimately, JNJ has front row seats for the pending spending boom in the East. After all, there is only one thing we need more than food and water… and that’s medical care. That could be as simple as taking a pill to feel better or rubbing an ointment on a burn to ease the pain, or even a complex surgery or life-saving medical scan.

This reality gives the company double opportunity. Over the next decade, the bulk of the Baby Boomers in developed countries, who were born in the 1950s, will stop working. They’ll start enjoying retirement, but also will become frailer. They’ll need more medical attention and medicine.

Even through many developed countries are headed into a second Great Depression… even though deflation will alter our economic landscape… the Boomers will still need and use medicine and health services. As one of the biggest health companies around Johnson & Johnson – and its shareholders – will profit from this unalterable fact.

And back in developing nations...

As the populations in the East reach their peak spending stage, they’ll buy more medicines and will be in urban areas where they can more easily access physicians, specialists, and hospitals. Look…

Again, Johnson & Johnson has the experience and global coverage to profit from this trend.

Bottom line, Johnson & Johnson covers the spectrum of health and wellbeing, which makes it perfectly positioned to remain standing tall after any crash.

Action to Take: Watch Johnson & Johnson (NYSE: JNJ), but do not buy until we tell you the time is right.

It is important to note that if you allocate a portion of your portfolio to dividend-paying stocks, then these are great companies to consider. However, we recommend only entering them after the next great crash. If anything changes that prompts up to recommend buying these companies earlier, we’ll let you know in your monthly Boom & Bust or your weekly 5 Day Forecast.

Also note that the recommendations in this report do not form part of the official Boom & Bust portfolio. We do not track these plays until they’ve entered the portfolio.

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Publisher ............................. Shannon SandsEditors ................................. Harry Dent Portfolio Manager ............... Rodney Johnson

Charles Street Research819 North Charles St Baltimore, MD 21201 USAUSA Toll Free Tel.: (888) 211-2215Contact: https://www.dentresearch.com/contact-us/ Website: https://www.dentresearch.com/

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