Dennis Kneale IS an idiot

Please take a look at the following chart:



Dennis Kneale actually strikes me as a well intentioned man and NOT the biggest tool on CNBC. That award actually goes to "Family" man Brian Shactman, ....




But I digress... Dennis "the real deal" Kneale is an idiot because he just doesn't understand the chart at the top of this page. I can understand Dennis Kneale wanting to be positive, who wants to think the worst is going to happen? But when you suspend reality and risk the LIFE SAVINGS of your viewers you get called an Idiot. Actually Idiot is probably being nice to Mr. Kneale, one could make the case that the advice he dispenses borders on Criminal.

Let's look at that chart. From 1900 to 1980 the DJIA went from 0ish to 1000ish or in other words America built 1000 points of value in 80 years, not exciting but good. Between 1980 and 1990 the DJIA went from 1,000 to 2,000, in 10 years we had created as much value as the previous 80 years..."Great Success"

Between 1990 and 2000 the DJIA went from 2,000 to 11,000. 80 years = 1,000 points, 10 years = 1,000 points and finally another 10 years = 9,000 points. The amazing part is we did this while getting rid of our manufacturing base. I wonder what could have caused such incredible growth over the past 20 years?



Being an idiot, Dennis Kneale would say that this only means that we are going to 20,000 so you had better BUY, BUY, BUY!!! Instead of being on a quest to tell people that they need to hop on the recovery train would it kill him to tell people how to hedge? You know, acknowledge that he has no freakin idea where this market is going. Yes it could go to 20,000 in an inflationary orgasm but it could just as easily go to 1,500, in line with historical levels.

Since he won't tell you how to hedge I will. Pick 5 high dividend diversified out performing stocks and make that 50% of your portfolio. With the other half of your portfolio buy stock symbol SH (Inverse S&P 500). Now rebalance every 6 months, you won't make a killing but you won't lose everything when the market crashes (you will actually make a killing that day).

I think that Dennis Kneale is an idiot because everyday he could be helping investors move towards a comfortable retirement but instead chooses to convince people that he is right de facto risking THEIR future well being.