Yesterday mornrning, I hopped on the line with Dent Senior Research Analyst Dave Okenquist to catch up on all the goings on around the world at present moment.
First on our agenda was China, who’s shown itself to be quite fragile lately, with big decisions being made in the wrong ways for the wrong reasons. The country needs a revolution, frankly, with a people-controlled governrnment. A democracy. That’s the only way for the Chinese people to reach the sort of economic heights the country’s capable of.
If not, then it’s going to be trouble for the entire country. The Chinese governrnment has expanded well beyond their means, and when a downturnrn comes, they’re going to reap what they have sowed. Trust me on that. We’ve already seen examples of this sort of top-down overbuilding in Asian countries, but at this point, it’s gone too far. The country’s far too urban to be running a governrnment the way they are. The very pernrnicious Hong Kong riots are a great step in the right direction!
But we also had to talk about the markets for a bit. And frankly, I’m getting a bit annoyed with how sideways things have been. When are we going to see a breakout? In either direction!
This has been happening since January of 2018, mind you, thanks to governrnment stimulus and the propping up of the Fed. But with each correction we’re seeing a deeper dive, with is troubling and doesn’t bode well for the future. But it’s hard to tell exactly what “the future” means right now. We’ve been in purgatory for quite some time. I still lean towards the downside resolution near term.
Over-built, over-speculation, over-controlled. China is using all the wrong tactics when it comes to Hong Kong, says Harry Dent. Watch his latest interview with Dave Okensquist to get his take on the international state of affairs, and how economic trouble is brewing in our own country as we inch closer to the 2020 election. Sign up for Boom & Bust here: https://pro.dentresearch.com/m/1051908
Posted by Economy and Markets on Friday, October 25, 2019