How I’ll Escape the Madness of the Crowds This Week

Some days I just scratch my head.

Tesla CEO Elon Musk overpromises and underdelivers almost every single quarter, and yet the company’s stock goes up. Is losing money on every sale even when taking government subsidies really a winning business strategy?

Let’s all drive Teslas. That’ll show the skeptics! Then the company will… oh, wait, that wouldn’t work. Tesla would still lose money!

But, hey, some people clearly love the company, because they keep driving its price higher.

Investors are driving many Tesla-type stocks to dizzying heights, and maybe they’re right. Maybe I’m stuck in the backseat when it comes to new ideas.

Or maybe people simply chase anything with a green arrow next to it, hoping to pad their retirement accounts because their income isn’t high enough to put more in savings.

By that measure, rising stocks will keep rising, until they don’t. And then everyone searching for other green arrows on TV or the internet will squeeze through the exit, shaving off some of their value as they go.

Once a year I get to escape the madness of the crowds.

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It’s not a yearly pilgrimage to the beach or a mountain retreat. I take a laptop on such excursions (as I presume most of you do as well).

No, I’m referring to our annual Irrational Economic Summit, which takes place this week in Nashville.

We named it that because our economic and monetary policies in the U.S. are built on the premise of people acting rationally, like spending down all of your cash when interest rates fall below the rate of inflation.

But no one behaves rationally.

We hold back, and then we jump in without looking. We buy the wrong things. We chase green arrows instead of great ideas.

IES, now in its fifth year, gives us a chance to bring in some calming words of wisdom – think Dr. Lacy Hunt of Hoisington – as well as bright minds that challenge us to think of new markets and ideas.

This year our lineup includes experts on cryptocurrencies, cannabis, and underwater mining, among other speakers like me, Harry, and the rest of the Dent Research crew.

That’s diverse.

I’m a crypto-skeptic. But with the market on fire, my job is to dive deep in the pool and see what I find. You can be sure I’ll report back.

As for cannabis and underwater mining, these are obvious, but untapped markets.

Marijuana relieves pain caused by cancer, glaucoma, muscle fatigue, epilepsy, and many other illnesses and symptoms.

We don’t study the drug because of a wrong-headed classification by the U.S. government made half a century ago. It’s high time (excuse the pun) we revisited this idea and put the health of the nation first.

I’m not talking about recreational use; that’s a topic for state legislatures to tackle. I’m referring to the strains that don’t affect your mind, but can provide welcomed physical relief, as I wrote in an issue of Boom & Bust earlier this year.

Underwater mining is one of those, “Duh,” things. Water covers more than 70% of the earth, and whatever we find in dry land formations also exists under water. Why aren’t we doing more to safely extract commodities? One of our speakers will fill us in on that very industry.

If you’re unable to attend the summit in person in Nashville, we’ll miss you, but you also can catch the conference via our live stream. I suggest you check it out.

I’m looking forward to the next several days.

They’ll give me a chance to re-center and, at least for a little while, ignore the insanity that I see every day in the markets.

Along the way, I’ll get a glimpse into some of the biggest economic changes that lie ahead, based on solid demand and profitable solutions.

Now that should be refreshing.

Rodney Johnson
Follow me on Twitter @RJHSDent

What Killed the Middle Class?

Today real incomes of the middle class are 5% lower than they were in 1970 and 12.4% lower than in 2000… when they peaked! How could this be?

In our new infographic What Killed the Middle Class?, we take a look at some shocking numbers to show how bad it’s become and what has been fueling this middle-class revolt.

 

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Categories: Markets

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.