What’s Wrong With the System?

 Don’t even get me started!

Here at Dent Research we see so much that’s “wrong with the system,” we believe rationality has fled the world. The economy added a disappointing 162,000 jobs this month… but that’s good because it gives the Fed an excuse to keep printing and that makes markets happy.

Japan is thrilled about its inflation. Never mind that it’s only 0.2%, and in the two areas that hurt consumers the most, fuel and food.

And Spain’s practically throwing a party because its unemployment fell by 0.9%. Really? The fact that a few more people were able to find work is good news, of course. But I’m pretty confident that, faced with nearly 50% of the country’s youth unemployed, along with more than a quarter of the general population, the Spanish citizens aren’t breaking out the pompoms and popping open the champagne.


That said, irrational or rational, boom or bust, understanding the world around us gives us the power to make good financial and investment decisions. That’s why, on Monday, we dedicated our Boom & Bust Weekly issue to answering paid subscribers’ questions. Bob wanted to know more details about our stop-loss strategy. Chris wanted to know more about why we exited our Charter Communications investment in March and our Beazer investment in May. Ron asked how we could possibly believe in large scale deflation in the face of the Fed’s happy trigger finger. And then there was this, from Peter…

    • “Why does not a single macro-economist at Fed or ECB level, university of economics professors, or anybody other than your subscribers, recognize your well-documented and researched data, and value it for what it is worth? What’s so wrong with the system that nobody worth his or her salt in the field of macro-economics recognizes how the grey flood of (potential) pensioners is going to flood the entire consumer market? From supermarkets to the options wanted in cars, dental care, physiotherapy, care for the elderly… it’s going to be an entirely differently driven economy. In short, how come you are the only one with a vision about how the next 10 to 15 years looks?”

      Rodney’s reply: Peter, thank you for the kind words! We actually know of a few people, like ex-Fed President Bob McTeer, who have read our work and believe it has merit. We have been contacted by members of the governrnment from time to time. However, much of what we write points to how governrnment meddling cannot help, and in fact can be harmful, to the economy. I guess that’s a message most of them don’t want to hear or acknowledge.

      We’re also often asked about the best ways to invest in this irrational world… and we spend a significant chunk of our time researching and developing investment strategies that can deliver good returnrns with limited (or at least well-managed) risk. Last November, we launched Adam’s Cycle 9 Alert service, which continues to do really well. Average returnrn to date is 32% after 22 positions (including four that are still open with large unrealized gains). The S&P 500 is up only 19% since November. That puts Adam’s Cycle 9 Alert returnrns more than two-thirds higher. That’s great, if you ask me! Now we’re testing a new service…

    • The power of just three questions… Look at this chart.

      See larger image

It shows the cumulative returnrns Rodney was able to record over the last 13 years when, recently, he spent several weeks back testing a new investing strategy he’s developing for readers who want to boost their investment portfolios using our demographic research.

Without using leverage, options, penny stocks or IPOs (initial public offerings), Rodney’s new strategy finds powerful investments by starting with three simple questions: What do people want? What do people need? And what do people do? On Tuesday, he reached out to lifetime Boom & Bust Elite subscribers for volunteers to beta-test his new service. And on Thursday, those beta-testers got their first alert. So we’re off to the races… and we’re putting Rodney’s new service through its paces.

How will it work? On the first day of each month, they’ll get the names and stock symbols of investments Rodney’s system has identified as on fire. Then, when his strategy reveals it’s time to change investments, Rodney will send beta-testers an alert with instructions. And in between, they’ll get weekly updates on any new market developments and their effect of the stocks in the model portfolio. I’ll let you know how it goes as we move towards making this great new investing strategy available to you.

  • Dream turnrned nightmare? On Wednesday, we reconsidered our position on the housing market. That’s not to say we changed our position, but we took another look under the hood. What we found was that the percentage of Americans who own a home – the homeownership rate – has fallen to an 18-year low. This shouldn’t be much of a surprise, as we’ve been talking about the mass exodus of displaced homeowners who are creating an updraft in the rental market. Naturally, this leads to the question: buy or rent? Right now, both are dangerous. If you missed this article, read it now.
  • One last point… In this winter economic season, we believe income is a vital component in your investment portfolio. So we’re constantly on the lookout for ways you can development income streams. When Tom Dyson, Publisher at Palm Beach Letter, another Agora affiliate, asked if we’d share with you the simple income technique they’ve uncovered, we saw no reason not to. We don’t necessarily agree with everything our colleagues at the Palm Beach Letter say, but we do see value in this particular strategy. And like Rodney said the other day, “We don’t like to surround ourselves with people who simply agree with us. That would be no fun.” Have a look at what this strategy can do for you. Give it a try.

 Talk to you next Saturday. Until then,


P.S. By the way, thank you to all who wrote to me after last Saturday’s issue… Cindy, Alex, Thomas, Kathleen, Gordon, Anna, Scott (too many to name here). I’ve replied to many of you. For those who have not heard back from me yet, know that I discussed some of your suggestions with Harry and Rodney yesterday during our weekly editorial meeting and I’m excited to say you’ll be seeing their take on some of those ideas during the month. Keep reading.


Ahead of the Curve with Adam O’Dell

U.S. Stocks Still the Way to Go

The S&P 500 – arguably the world’s most-followed stock market index – closed at an all-time high of 1,706.87 yesterday.