Huge market prediction - were we right?

By Wayne Mulligan, on Thursday, November 12, 2015

We began sounding the warning bells late last year...

A major market event was coming, and people needed to get ready for it.

After in-depth discussions with numerous sources—politicians, finance professionals, attorneys with close contacts at the SEC—we felt confident going on record and making one of the boldest market predictions of our careers.

We told our readers exactly what was coming, we told them when it was coming, and then we started preparing them for it.

Many people doubted us...

Many more simply ignored us.

But finally, after months of anticipation, our prediction just came true—

And we believe it could completely change your financial future.

A Truly Disruptive Event

If you’ve been a Crowdability reader for any length of time, you probably know what I’m referring to.

I’m talking about The JOBS Act—and more specifically, a provision of The JOBS Act known as "Title III."

Title III is what will allow all investors—regardless of income or net worth—to invest in private equity transactions.

This includes start-up investments, private real estate deals, hedge funds... even fine art.

The JOBS Act was passed in 2012, but in the ensuing three years, the SEC made very little progress on Title III.

Many began to wonder if it would ever happen...

Word on The Street

But late last year, several of our most respected sources started singing the same tune...

They informed us that there was a strong chance that Title III would be voted on in 2015—and “go live” in 2016.

After embarking on a number of fact-finding missions, we came to the conclusion that this timeline was spot-on. In fact, we became increasingly certain about the exact month that the vote would occur. So we sprang into action...

We began hosting regular online webinars to help get the word out to our readers...

We went on record—and we stated with great specificity—that the SEC would take “final action” on Title III by October 2015.

And on the morning of October 30th, it did take final action:

In a vote of 3-to-1, the SEC commissioners approved the regulations around Title III.

And in less than 180 days, on May 2nd, 2016, it will finally “go live.”

You might be wondering why we made such a fuss about this law...

Why did we spend so much of our time and resources hosting weekly webinars and writing, literally, hundreds of articles on this topic?

Why did we believe it was so critically important for you to know about this law and when it would come to pass?

The Most Profitable Asset Class of All Time

Well, the answer is two-fold:

For one thing, we knew that many investors would be lured into this new market because of how profitable it can be...

For example, did you know that the five most profitable investments of all time were in private equity?

And it’s not just that a handful of private investments became profitable—historically speaking, private equity is the most profitable asset class.

In fact, CNBC recently said that private equity is “delivering the highest rate of return for future retirees."

And with companies like Uber and Airbnb in the press each week for raising billions of dollars—and minting new millionaires in the process—it’s only natural that you’d want to get in on the action.

However, think about how many times you’ve rushed into the “hot” new market in the past. And think about how things worked out for you:

Maybe you got burned during the dot-com days...

Or you lost money dabbling in real estate before the 2008 crash...

And if you’ve ever been seduced by some of the “get rich quick” penny stock newsletters out there, you may have lost money there too.

It’s not that any of those asset classes are bad investments—they’re just bad investments if you don’t know what you’re doing.

The same applies here: the upside potential in private equity is extraordinary, but if you don’t know what you’re doing, so is the potential for serious losses.

Your Options Are Limited

The second reason we made it our mission to prepare investors is because we believe we’re at a crossroads in America.

The government’s excessive borrowing and artificially depressed interest rates have created a potentially devastating situation for overleveraged corporate borrowers (and for investors who own their stock).

Furthermore, by flooding the market with cheap money, the government has artificially pumped up the market to the point where it’s become more and more challenging to find fairly priced stocks.

On top of that, the public markets just aren’t what they used to be:

The big jump in a company’s value no longer occurs after it’s gone public—it’s now happening while the company is still private.

In fact, as recently as the year 2000, the average amount of time between a company being founded and going IPO was 6 years...

Today, that number is closer to 10 years.

Those four extra years allow a company to build its business dramatically—and allow it to increase its market value dramatically.

By the time a company goes public, all that value creation has already been sucked out by the private investors.

Therefore, we believe that if you’re not involved in the private markets, your portfolio will be flat (at best)—and at worst, you’ll miss out on what could be a life changing opportunity to get into one of the most profitable asset classes of all time.

It’s Time To Get Ready...

So it’s no longer a question of whether or not you “should” invest in the private markets...

That’s a foregone conclusion—you need to be there. Now you simply have to decide how you want to get ready for it.

If you’re already a student in our Early-Stage Playbook program or a subscriber to CrowdabilityIQ, you’re already on your way to being ready for May 2nd.

But if you haven’t looked into our premium services yet—or simply aren’t ready to make the commitment—then at the very least, go ahead and download our free whitepapers and watch the “core concept” videos here on our resources page »

We hope you’re as excited about this event as we are. We’re going to continue to do our best to get you prepared for 2016.

Along those lines, please let us know what else we can do to help—leave us a comment below with any questions you’d like answered with respect to The JOBS Act, Title III or private equity investing in general.

Happy investing.

Best Regards,
Wayne Mulligan
Wayne Mulligan


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Tags: Equity Crowdfunding Title III Private Equity SEC Prediction Private Market

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