In one of the most amazing bear-capitulations of the past many months, Harry S. Dent, interviewed on GoldSeek Radio (link to the MP3 file embedded below, interview starts at about 42"30') on Friday, announced that stocks will make a new high, at about 1,600 S&P 500 points.
Points from the interview:
- QE3 in the next 2-3-4 months
- Stocks and gold will like it
- It will be inflationary
- Now believes the stocks will finish 2012 in record territory
- S&P to reach 1,600 and Dow 15,000 by early next year before the Fed runs out of bullets
- Gold to gain 10-15%, Silver to reach the $40s but not make new highs
- At least a 70% crash to follow (2013?)
For those of you who have been following my blog or Harry S. Dent, you are probably quite aware of him being a vocal deflationist, and forecasting a market crash just a few months/weeks ago.
If Harry S. Dent is proven wrong on this call, it could very likely to be one of those capitulations which marks tops. Jeremy Grantham did it back in April 2010. Will it be a long term or a short term one? I can't tell yet.