Pavement sellers have known for ages that the fastest way to catch the attention of a passerby is to make an outrageous claim. The curiosity aroused may result in a few quick bucks and this effective modus operandi has now been visually embraced by every peddler on the internet. Clearly, sensationalism, like celebrity gossip, does sell, but what builds a reputation is delivering on those sensational claims.
The subject of this issue’s cover story has experienced both fame as well as ignominy. Florida-based economist and demographics forecaster, Harry Dent, was hailed as a seer in the early 1990s and then had a big chunk of that sheen taken away after his later forecast did not quite play out. Sceptics there have been many, but that has not deterred Dent from persistently putting his neck on the line.
In his latest book, Dent makes many an ominous forecast. While there have been several who have doubted the resilience of the recovery that has followed the 2008 crisis, there have been few as vocal as Dent. What is also a fact, though, is that a contrarian stance would have left you standing on the sidelines for a very long time.
The Dow Jones Industrial Average may have pulled back from its all-time high but, drunk on abundant liquidity, investors are far from throwing in the towel. In fact, from Dalal Street to Wall Street, every pullback is still being advocated as a buying opportunity.
It is against such optimism that Dent is placing his bets and he has his reasons. This time around Dent is so confident that during his presentations, he proclaims, “If I am wrong this time, I am going to quit the business and become a limo driver in Australia.” Depending on how the future unravels, Dent will either regain his status as a forecasting megastar or get tagged as an also-ran economist. To know more about the factors driving Dent’s pessimism, read "When China Falls, Investors will ask, what is the next big thing?"
Among other stories, there is a feature on the current buzzword being tossed around during a strategy session: cause-related marketing. It is about tugging at your heartstrings to drive sales. To read who is doing what, read Doing Well By Doing Good.
