Revolt 2016 By Shannon Sands, Publisher, Dent Research On Monday, the highly anticipated matchup between the Secretary and the Donald didn't disappoint. Unless you were looking for substance, of course.
This isn't the space to decide who won or lost. Everyone has their own opinion and, as far as we can tell, it's not changing… despite the antics that continue to play out daily on both sides.
That being said, I did a double take when the Donald took a page from our playbook…
On Monday night, the Republican presidential nominee said: "Believe me, we are in a bubble right now, and the only thing that looks good is the stock market, but if you raise interest rates even a little bit, that's going to come crashing down. We are in a big, fat, ugly bubble." It's the first time I heard anyone on network television say we're in a bubble. Most of the talking heads disagree with Harry's (and now Trump's) assertion.
Harry has been yelling from the rafters for the last few months that we're witnessing the greatest and widest-reaching bubble in modern history. And it will burst – painfully – like every bubble that has come before it.
Yet so few people see it coming.
A little less than two weeks ago, Harry released his latest best seller, The Sale of a Lifetime. (Be sure to get your copy today…we've sold over 10,000 already so inventory at Amazon is running low.)
In it, he reveals his seven guiding principles of bubbles and then walks you through history to show the bubbles and resets we've seen before. You'll quickly see, they're all similar. And the current bubble is no different. In fact, bubbles and their bursts are largely predictable in their exponential build-up and their inevitable and more rapid collapse.
These major stock market collapses we've seen in the past (and will see in the next few months) are NOT completely unpredictable "black swan events," as most experts try to tell you.
History shows us one clear fact: EVERY debt bubble leads to a financial asset bubble (think stocks, real estate and commodities)… and EVERY financial bubble bursts. The greater the bubble, the greater the burst.
Thankfully, dear reader, you'll be prepared.
On Monday, September 26, Harry wrote to 5 Day Forecast readers about Trump's inevitable win… whether or not he becomes president or not (and perhaps even more so if he loses!). Harry's not a Republican or a Democrat. If you forced him to label himself, he'd say he's an Independent… a fiscal conservative, social liberal.
And he hates talking politics. But, on Monday he explained that, whether Trump loses this election or not (and right now it looks a bit more likely we'll all be saying "President Clinton" again soon), he's already won a much bigger battle.
Trump is the game changer. There's a disenfranchised middle and lower class who have seen globalization and immigration (both legal and illegal) lower their wages and standards of living.
They're angry.
They're disillusioned.
And Trump speaks their "language."
As Harry wrote on Monday… Globalization is a good thing, overall, but it's reached its peak for now. It has ended up putting very different political and religious factions right up into each other's face. At this point it's hurting more than helping most workers in this country, although the reality is that we had high-paying jobs that just weren't justified in the new global world where Chinese and Mexican workers could do the same jobs at lower wage rates!
The truth is that the world is going to have to regroup around such political and religious cultural lines before globalization can advance again. This could easily take several years or more – a part of my 250-year Revolution Cycle...
This isn't just another debt-deleveraging depression… we have a revolution coming in our political, social and cultural realms. A breakdown before a breakthrough…
The rising popularity of Trump on the right and Bernie Sanders on the left is a sign of this "great dissatisfaction" of the waning middle class…
There are a lot of very unhappy people in the streets of America right now… That's why we're gearing up for the exclusive premiere of a controversial new presentation from Harry. On October 11, 2016 at 1:00 p.m. EDT, he'll share his latest, shocking prediction for America and the urgent steps you'll need to take to protect yourself right now. We'll be sending out invitations to attend this event on Monday, so please watch your inbox closely.
On Tuesday, September 27, Rodney wrote to you about the results of his investigation into the unusually good income numbers reported recently. As you may remember from his article last week, the Census Bureau has reported that median income jumped 5.2% last year. That's a solid increase, but still leaves us short of the record in 1999.
Still, something about the gains struck Rodney as wrong. Even with cities, states, and some businesses bumping up their minimum wage, 5.2% seemed like a lot. So he went digging. And the more he dug, the more disappointed and frustrated he became. As usual, the source of his angst was the federal government.
If you haven't had a chance to read Rodney's Economy & Markets email from Tuesday, do so now.
On Wednesday, September 28, we sent Boom & Bust Elite subscribers their latest Ahead of the Curve webinar. This month, Harry and Rodney had a discussion about the likely triggers for the next global meltdown.
"If Italy defaults, the euro is dead!" Harry said.
Harry believes an Italian default and the collapse of banks across Europe could well be the final straw that breaks this bull's back! The largest bank in Germany is already going down like a kite!
The reality is that, despite the Eurozone's desperate attempts to keep its debt crisis at bay, the weaker countries in the union will fracture under their declining demographics – with Italy leading the pack. This time, however, there won't be a bailout like there was for Greece.
German Chancellor, Angela Merkel, has said as much… and in doing so, she's painted herself into a corner.
With the crisis unfolding at Deutsche Bank, the situation is deteriorating faster than anyone would like, and Merkel has essentially said "bail in or die."
The trouble facing Deutsche Bank – and in fact banks all across Europe – is something Harry highlighted back in February already, in The Leading Edge. 
He spoke about it again on Friday, in Economy & Markets.
And on Thursday, our resident Forensic Accountant, John, instructed his Forensic Investor subscribers to put on a new short… on a very surprising company!
He started by saying… A couple weeks ago I mentioned how insider selling is at three-year highs while corporate buybacks are at three-year lows. Corporate buybacks have been a huge source of stock market returns over the past seven years.
The recent trends typically wouldn't bode well for stocks. So, going into earnings season, I want to be loaded on the short side, especially because the stock market is expensive. This latest "dead body" that John has uncovered has seen a sharp deceleration in its revenue growth. In June, the year-over-year growth was 24% from the prior quarter and 70% from a year ago.
And the company's net income has been hammered by a litigation settlement and other related costs.
John explained: By itself that is not a critique. All companies slow down over time. The problem is that many of the quality metrics don't show a lot of operating leverage in [this company's] business model. So, it's resorted to Adjusted EBITDA. I remind everyone that Warren Buffett refers to EBITDA as "earnings before the bad stuff." And if you're removing all the bad stuff, you're really not getting a good picture of the company. John had many other metrics that show why this is a great short to put into your portfolio now, and if you're interested, you can learn more about Forensic Investor here… but the take away is that you need to tread very carefully right now. There's unease, unrest and a lot of number fudging.
Talk to you next week.
Shannon Sands
Publisher, Dent Research
P.S. If you've read Harry's new book, The Sale of a Lifetime, we'd love to get your feedback. Please leave a rating and a review for us on Amazon.
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