article 3 months old

Rudi Interviews Harry Dent

Always an independent thinker, Rudi has not shied away from making big out-of-consensus predictions that proved accurate later on. When Rio Tinto shares surged above $120 he wrote investors should sell. In mid-2008 he warned investors not to hold on to equities in oil producers. In August 2008 he predicted the largest sell-off in commodities stocks was about to follow. In 2009 he suggested Australian banks were an excellent buy. Between 2011 and 2015 Rudi consistently maintained investors were better off avoiding exposure to commodities and to commodities stocks. Post GFC, he dedicated his research to finding All-Weather Performers. See also "All-Weather Performers" on this website, as well as the Special Reports section.

Rudi's View | Oct 23 2020

A whirlwind interview with Harry Dent, former uber-bull on Wall Street who nowadays predicts the crash of all crashes, while at the same time offering investors post-crash optimism

-Harry Dent predicts biggest crash in history about to unfold
-Central banks’ money-printing experiment (soon) to prove unsustainable
-Australia among few countries poised to dominate post-event

By Rudi Filapek-Vandyck, Editor FNArena

He’s known as the modern day perma-bear, so when I was offered the opportunity to interview Harry Dent I thought: let’s do this. Let’s see what you’ve got, Harry!

What we got is a high-energy, full-velocity whirlwind history of financial bubbles, from the 1600s until today, with a rare pause in between. This guy has no “off” button!

He thumbs the table, gesticulates wildly, imitates a morose drug addict, then stares into the camera with all-fired up beaming laser eyes, raising his voice, declaring solemnly: if my predictions don’t come out in the next three years, I am quitting my career!

His prediction, by the way, is nothing to be sniffed at: the biggest crash humanity has ever seen. More savage than the 1930s or the GFC. There will be very few places to hide for investors.

Dent’s premise is based upon the fact that demographic trends usurp everything else and all cycles move through four stages, and right now we have entered “winter”.

The sole reason this is not being reflected in asset prices, most prominently US equities, is because of massive money printing by the Federal Reserve and other central banks.

This policy, enacted “by accident” following the collapse of Lehman Bros in late 2008, won’t prove sustainable and is only postponing the inevitable, Dent believes.

Though, when prodded with the right questions, he’s willing to concede a second scenario outcome is possible, but Dent suspects not many are going to like that outcome either.

Dent is not universally uber-bearish, offering once this 11-year old financial asset bubble starts deflating, opportunities will be plenty, and he’s sharing his strategy for the onslaught ahead – meanwhile marketing his new Dent Sector Fund.

Deflation, not inflation remains the dominating theme, he explains, while referencing Alan Greenspan, Ray Dalio, Peter Schiff and Mark Bouris.

Quote of the day: Facebook is the new Darth Vader.

Dent’s promise: once the dust settles, Australia will be among five countries to stand-out in the post-crash recovery bull market.

Final tune: The future is uncertain; the end is always near. Thanks Jim Morrison and the Doors, and to you, Harry Dent.

To view the full interview (60 minutes):

(Do note that, in line with all my analyses, appearances and presentations, all of the above names and calculations are provided for educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions.)  

P.S. I – All paying members at FNArena are being reminded they can set an email alert for my Rudi's View stories. Go to My Alerts (top bar of the website) and tick the box in front of 'Rudi's View'. You will receive an email alert every time a new Rudi's View story has been published on the website. 

P.S. II – If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

FNArena is proud about its track record and past achievements: Ten Years On

Share on FacebookTweet about this on TwitterShare on LinkedIn

Click to view our Glossary of Financial Terms