W. Michael Robertson 5120 Woodway Drive, Suite 9029 Contact: Peggy Tuck “Securities offered through First Allied Securities, Inc. Member: FINRA/SIPC” ROBERTSON WEALTH MANAGEMENT

“If you don’t understand what took the market up, you won’t understand what will take the market down.” –Harry Dent

Average Annual Family Spending by Age (5- year age groups) Age

Dow Average The last demographic trough was followed by a 20 fold return in stocks in 18 years Dow Average soared from 600 to 12, Battle of Midway 1982 Demographic Tailwind Starts 1962 Demographic Headwind starts

Immigration- adjusted Births Lagged for Peak Spending Dow Adjusted for Inflation The Spending Wave Births Lagged for Peak in Family Spending

S&P 500 Index at Inflection Points 6 GTM – U.S.

Japan Nikkei Bubble From Data Source: Bloomberg

Change in Japanese Consumer Spending 1987 – 2007 Source: Japanese Family Income and Expenditure Survey

Japanese Stocks vs. Consumer Spending 1987 – 2007 Source: Japanese Family Income and Expenditure Survey Nikkei Average Change in Consumer Spending

The Only Chart You’ll Ever Need to Read Demographics turn to tailwind in 2022, Peaks in the Spending group Works in a 40 Year Cycle 1966 Peak 2006 Peak 2036 Peak 2022 Trough From: “The Crash Ahead” by Harry S. Dent

The Best House in a Bad Neighborhood *A global synchronized recession without the US *US Growing at 2% *Europe in recession *Japan in recession *China permanently slowing from 11% to 7%

Implications of The Demographic Tailwind that Starts in 2022 *Labor Oversupply turns to a shortage *Unemployment rate falls to under 5% *Rising wages lead to consumer spending boom *Housing shortage leads to residential real estate boom no serious construction for 15 years *Soaring capital investment to meet this demand drives up interest rates *Inflation at long last returns *Both legal and illegal immigration accelerates *Subprime loans make a comeback

Major Long Term Trends Reassert in the 2020’s bring back the “RISK ON” *The growth of the global population from 7 billion to 9 billion *The rise of the emerging market middle class, from 500 million to 2 billion *The scarcity of essential natural resources *Global food shortages accelerates *The rise of technology *Deflation ends, inflation resumes

Population Changes billion new people More than half of the increase will be in Islamic countries. Islamic population growth from 1 to 2 billion Greatest growth in poorest countries The war against terrorism will not end in 4 years Population levels off in Latin America, Africa, China China’s one child policy has cut growth by 400 million China demographically turns into Japan in 20 years Population shrinks in Japan and levels off in Europe US population levels off at 400 million in 2050 from the current 300 million The immigration advantage: Add 1%/year of GDP growth California jumps from 37 million to 50 million source: CIA Fact Book

The 2020’s will be the “Risk On” Decade *Growing economy=“RISK ON”, buy: stocks, emerging markets commodities precious metals, especially silver foreign currencies especially the Australian and Canadian dollars commercial real estate & multifamily dwellings single family homes *Avoid “RISK OFF” Assets, sell: US Treasury bonds Corporate bonds Muni bonds Sovereign bonds

The Only Chart You’ll Ever Need to Read Demographics turn to tailwind in 2022, Peaks in the Spending group Works in a 40 Year Cycle 1966 Peak 2006 Peak 2036 Peak 2022 Trough From: “The Crash Ahead” by Harry S. Dent

Long Term House Prices vs. Inflation Source: Robert J. Shiller, Irrational Exuberance, 2nd Edition, Princeton University Press, 2005.

CORPORATE BOND YIELDS MINUS STOCK EARNINGS YIELD Source: Bloomberg

Contact: Peggy Tuck ” ROBERTSON WEALTH MANAGEMENT Straight Talk Money 8-9am Business 1110 AM KTEK

Do you have a strategy when your Taxes go up?

13% on amount over $ 20,000 and not exceeding $ 50,000 16% on amount over $ 50,000 and not exceeding $ 75,000 29% on amount over $ 75,000 and not exceeding $100,000 42% on amount over $100,000 and not exceeding $250,000 65% on amount over $250,000 and not exceeding $500,000 78% on amount over $500, tax form

1% on amount over $ 20,000 and not exceeding $ 50,000 2% on amount over $ 50,000 and not exceeding $ 75,000 3% on amount over $ 75,000 and not exceeding $100,000 4% on amount over $100,000 and not exceeding $250,000 5% on amount over $250,000 and not exceeding $500,000 6% on amount over $500, tax form