SOS Harry Dent says the economy will end up like Lindsay Lohan

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Everyone has his methodology in assessing the financial markets. Some uses fundamental analysis (GDP, PE, Dividend Yield, Growth, etc), while others use technical analysis (Elliote waves, MACD, RSI), and also some uses cycles and Harry Dent uses demographics. There is no perfect measurement, because, financial markets is not physics, where it can be determined by complicated formula.

It involves rational and non-rational actions. For example, sometime a person buys a share based on some reports, only after that he did a detail research to justify what he bought. Some, listen to news (papers, megazines, internet write ups, TVs, etc) and some listen to tips. Some got it right, some got it wrong, but never a 100% accuracy. Some may uses rational to buy a share, like ABC, and have good track records, but still losses money as the company turn out to be a fraud (fake figures).

Lets think from the Company's perspective, the management must always show good results and the incentives is to get a good bonus. There are many ways to improve the paper earnings via creative accounting.

In short, the financial markets (assuming stocks) is very complicated. Good, average and bad stocks are all listed. Good can turn out to be bad (fraud or misrepresentation). Bad may turn out to be worst (window dressing). So many different types of buyers and so many types of sellers, all having different emotions.

So, best way is to understand all 3 methods (which has its pros and cons), to assess the future. But then again, if everyone sees the same thing (say 90% economists/experts say it is bull market) and it turn up to be a bear market, what happen next. Even expert in their fields is unable to assess it correctly, what more than a layman with no financial or economic experience or exposure? Rely on the expert? Well, one way is pay some student fee and learn and educate ourselves. But, what happen if the experts is another one of the 90% experts out there, back to square one, I guess.

One conclusion can be derived from this discussion is that, it is all predestined. Now, how are you going to explain predestination rationally?

Why did Harry Dent (an economist) said that the US economy will end up like Lindsay Lohan?

Ok, what happened to Lindsay Lohan in the first place. She went into rehabilitation? Exactly. The above charts is his WILD predictions (the years are erased, meant for subscriber only).