Tuesday, October 23, 2012

Doom and Gloom always attracts crowds

Author Harry Dent had a full venue at last weeks World MoneyShow in Toronto. Doom and Gloom always attracts crowds. The topic was The Great Crash Ahead: Strategies for a World Turned Upside Down. Dent shows how the perfect storm of aging Baby Boomers, the greatest debt bubble in history and China’s massive overbuilding bubble will overwhelm continued stimulus programs and we see a deeper downturn and debt deleveraging crisis, likely between late 2012 and early 2015. More important he shows why deflation will be the trend, not inflation and that changes investment strategies completely. The most likely trigger: Spain’s bailout forces a crisis in Europe that spreads to North America and then to China and then to commodity prices and exports of emerging countries. Hence, this will be a global financial crisis and like late 2008, there will be few places to hide.

Apparently the Dent Tactical ETF (DENT) ETF was not one of the few places to hide.

Dent like Gartman, Meisels & Vialoux all had their own ETFs which usually end up being a disappointment for unit holders. The Tactical ETF (DENT) was closed last summer by AdvisorShares, which announced that the AdvisorShares Dent Tactical ETF (DENT) will be closed rather than reorganize into the AdvisorShares Meidell Tactical Advantage ETF (MATH) in a measure aimed to benefit shareholders

As far as Dent is concerned there is a big difference between talking the talk and walking the walk.

Today at mid-day the Dow and the TSX Composite are down over 200 points on earnings disappointments from several large U.S. multinationals, but there are some very positive technical conditions occurring right now. Can you spot them?

I will detail them on a post tomorrow after the close

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