Remember David Hefty?He’s the guy who in May predicted that the Dow would collapse to 5,000 by the end of the year, and well, his prediction isn’t looking so hot.
He was back on CNBC this morning explaining his wrong call, except… he claims he’s not wrong. He says he was just really early — which, truth be told — is pretty much the lamest excuse in the book.
But why was he early? Basically because governments intervened to save the economy. Germany agreed to bail out Greece — which hefty says was against EU law, but who cares!? — and the Fed has gone into QE mode.
Sorry, but if you’re one of his clients, it’s no consolation that Hefty’s call was wrong because governments intervened. In fact, if you lived through 2008, you should know that that’s what governments do when things get hairy — they intervene.
So might he still be right if the market suffers an end-of-year crash? Maybe, but… he’s now fully invested in inflation assets (like everyone else now) so he’ll lose out of the crash does happen.