The Stimulus Bubble?

I just finished reading The Next Great Bubble Boom by Harry S. Dent. Jr, it was a book full of Harry's predictions for the market averages and the economy over the long term. In his opinion the DOW JONES AVERAGE is destined to go up to 40,000 in the coming years. Harry based his predictions on several indicators like population growth, trend forecasting and inflation but....Harry didn't take into account the fact that there might be an interventionist style of government.


Anyhow, Harry S. Dent see's 40K on the Dow. Maybe if hyper inflation hits which many believe it will. The commodity names are rallying to the boost in global stimulus and the expectation for inflation. According to Big Ben, he plans on turning off the printing presses before inflation hits..... just like everything else he has ever planed, promised or predicted. He will most likely do it wrong.


Here is a chart of the S&P during times when rates dropped and bubbles began.




Some stocks you can look at for commodity plays are


TCK - a Canadian company that is partly owned by China

FCX - a US company with the largest reserves in Copper (good for smart phones) and Gold (good for ... nothing)

MEE - a fast moving energy name, fun to trade