Where the Markets and Economy are Heading

There’s no substitute for looking someone in the eye as you tell them what lies ahead for the markets and economy, which is why we developed our one-day seminar series, the Great American Reset Tour, to bring our message to our audience face-to-face.

The format of the program was simple enough — Harry Dent, Adam O’Dell, and I would lay out our market research and economic research on where we are, what lies ahead, and some ways in which people can avoid problems and earn profits. It sounds straightforward, except for one thing — my job was to go on stage after Harry Dent. Thanks for nothing!

Harry’s a smart man with a sharp wit and a sharper tongue, who’s passionate about markets and economic research, and who’s not afraid to speak his mind. He’s given thousands of presentations across the globe, and understands well how to bring an audience along.

I’ve been fortunate to give a fair number of speeches myself and, typically, I’m somewhat pleased to see the guy before me give a predictably boring presentation, which sets me up nicely to bring the room to life. Not so, when I follow Harry!

But as usual, and despite the tough act I was forced to follow, the event at each stop not only went well, but they were also exceptionally well received! Our audiences, which consisted of almost all new readers, were hungry for the information and paid close attention as we spoke.

Harry kicked off the day with a rundown of the economy, both here and abroad. While the Fed is busy pumping money into the economy, thus helping inflate the next asset bubbles in stocks and real estate, workaday people are wondering when they’ll start participating in the recovery.

After five long years of waiting for something good to happen, the promise of better times ahead is wearing thin.

The debt bubble that burst wasn’t allowed to totally deflate, so debt levels around the world remain exceptionally high. This is being made worse in countries, like Japan, that have fallen off of a demographic cliff.

And the demographic problem of an aging society is growing in one of the world’s strongest economies — Germany. When it goes over the edge, it will catch almost everyone by surprise, since this is the strongman of Europe.

Then Harry told the audiences to plan for rough times over the next several years. The catalyst would most likely be a breakdown in the Chinese housing and/or credit markets, but the ramifications would spread far and wide.

People should be very cautious in what assets they own, and only use proven systems when investing in equities.

Finally, he outlined major steps that business owners and those interested in real estate could take to position themselves safely, yet profitably, for the years ahead.

Never Mind the Demographic Cliff…
We Face a Retirement Cliff as Well

When it was my turn to speak, I talked about the retirement cliff that’s approaching… but it won’t happen in the way people imagine.

Instead of addressing what people have done for their own retirement, I addressed the issues facing mainstream Americans when it comes to Social Security, personal savings, and public pensions. (If you missed the roadshow, I talked about this in some depth in the May issue of Boom & Bust.)

The upshot is that we as a nation have very little set aside to pay for 80 million Americans to live 20 years without working, so as the bills come due, someone will be asked to fork over the dough.

That someone will be those who were in the audience at the Westin LAX Airport hotel, the Dallas Marriott Quorum Galleria, and the Sheraton Tampa Riverwalk, and most likely, you, because our typical reader and conference attendee has above average savings and above average retirement assets. When taxing authorities go looking for more cash, they will go to the people that have the money.

This might sound obvious, but the scope of the problem is what catches people by surprise.

As I told those in the room, more than 50% of current workers have less than $25,000 saved for retirement. This might not be so bad, because it includes young workers. But consider that more than 50% of retirees have less than $25,000 in retirement assets.

Add to this the fact that Social Security will go broke in about 15 years and that most states are underfunded on their pensions, and the stage is set for a showdown with those who have saved. Expect means testing of benefit programs, and higher tax rates across the board.

Adam rounded out the program by taking a different approach…

He explained that, luckily, he had no role in long-term forecasting. It’s not his job. Instead, he brings Boom & Bust subscribers investment ideas that are best suited to survive and prosper through the Economic Winter Season, and he gives his Cycle 9 Alert readers investment ideas that should pay off in 60 to 90 days or less.

Using a technical approach that he developed, Adam has been able to identify sectors and securities that are on the rise. By using options to invest, in Cycle 9 Alert, he can limit the risk of any position while allowing his gains to run.

One of the best parts of his approach is that it works well as markets rise and can also be applied when things roll over. This means his service fits nicely with our view of the world.

We know things will be tough ahead, but they won’t go straight down. Using a proven system to invest is the only way to take advantage of the current situation without leaving everything to chance.

And Finally… Questions

Each day on the road finished with a Q&A session. Some questions were the same in every town:

  • Yes, the U.S. dollar will get stronger;
  • No, the petro-dollar is not going away; and
  • No, your real estate is not special.

And then some questions were different. People in LA were much more concerned with real estate, particularly rentals (which are great as long as cash flow is strong), whereas Texans were focused on oil and gas.

Suffice it to say that each day of our tour was interesting, stimulating, and exciting. Attendees were sharp and their comments on point, which made the days go by quickly, and left me feeling that I got as much out of talking to our readers as they did listening to us.

Which is why I’m now looking forward to the fall.

In October, we’re holding our Irrational Economic Summit in Miami. This is our much bigger event, where we host 500+ of our readers for several days, and bring in a whirlwind of speakers to broach the economy and investing from many different angles.

This year, we are thrilled to have David Stockman as our keynote speaker. He’s a well-respected author who was part of the Reagan administration and has vast experience in the private sector. He’s also fabulous on stage.

Maybe this year, I’ll have Harry speak after David Stockman.


Rodney

P.S. Save your seat at our Irrational Economic Summit now. You don’t want to miss it.

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Harry Dent’s Most Disturbing Prediction in Years

Harry Dent, one of the most respected economists in the industry, has uncovered a disturbing market event that could soon devastate millions of investors. In short, he has undeniable proof that one of the market’s safest and most popular investments is about to get slaughtered… and it will have dire consequences for those who don’t prepare right away.

For full details on the event Harry’s dubbed as the “Safe-Asset Slaughter”… and to ensure you escape the coming carnage, I urge you to watch this special presentation.

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Categories: Retirement

About Author

Rodney Johnson works closely with Harry Dent to study how people spend their money as they go through predictable stages of life, how that spending drives our economy and how you can use this information to invest successfully in any market. Rodney began his career in financial services on Wall Street in the 1980s with Thomson McKinnon and then Prudential Securities. He started working on projects with Harry in the mid-1990s. He’s a regular guest on several radio programs such as America’s Wealth Management, Savvy Investor Radio, and has been featured on CNBC, Fox News and Fox Business’s “America’s Nightly Scorecard, where he discusses economic trends ranging from the price of oil to the direction of the U.S. economy. He holds degrees from Georgetown University and Southern Methodist University.