Rich Karlgaard Blasts Prechter, Farrell and Dent

By on July 11, 2010

Forbes columnist Rich Karlgaard recently posted an article criticizing the predictions and questioning the motivations of Robert Prechter, Paul Farrell and Harry Dent. All three in question have basically forecasted a continuing brutal bear market and the end of capitalism as we know it. Karlgaard calls them, “The Men Who Want to Be Roubini–which is to say rich and famous.”

Karlgaard makes a good point. These pundits have discovered that the more outlandish the prediction, the more likely it is people will take the time to read the reasoning behind it.

Karlgaard does praise Barry Ritholtz and Doug Kass, whose views (mainly Kass) have also been posted here.

SMA Comment: I have to plead guilty to airing two of these individual’s predictions (Prechter and Dent). However, like any prediction, they serve primarily as entertainment value, rather than any actionable investment counsel.

Source: Forbes
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2 Comments

  1. RIA

    July 12, 2010 at 12:29 am

    Rich Karlgaard and Forbes should be embarrassed, name calling, and connecting a financial profession to his personal knowledge of a transvestite is the kind of journalism that will continue to drive Forbes Magazine into bankruptcy. A forecast is just that, review the rational behind it and make your own decision, if you can't hire a financial professional.

  2. stocksystm

    July 12, 2010 at 3:33 am

    Thanks for the comment. Transvestite? Where did that come from? Anyway, Prechter has made a lot of predictions and has basically made a living off the one he made 30 years ago where he predicted the long bull market that ended in 1987. This latest forecast of Dow 1,000 appears to be an attention getting ploy, and has an extremely low probability of actually occurring.

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