Loading ...I started reading the Dines Letter in 1979 until his death. He used to say “the Dow was in the sky above 1000 from 1968 to 1982” every time it got above 1000 until 1982. At that point in June 1982 the Dow was at 796 and he switched from precious metals to the Dow, an excellent call, unfortunately he called the PMs sell advice two years too late.
I read his book The Invisible Crash, where he described the invisible crash of the Dow from ’68 to ’82 where it went flat plus real estate also flat for 14 years as rates were jacked up to 21% while most other THINGS like gold silver and oil were going higher. To him, going flat for all those years was actually a net crash adjusted for inflation.
P.S. He also predicted the Dow and the Gold price would cross and it did, with the Dow and Gold both around 800. If that happens again, where would they cross?? 25,000 Dow and $25,000 Gold? Who knows?
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An avid market technician and student of investor psychology, he called himself “the original gold bug,” and liked to recount the story of how he was fired from Wall Street for recommending gold at $35 an ounce.
In 1980, The Wall Street Journal wrote, “Metals mania vindicates such economic Cassandras as James Dines, who for years have urged investment in gold as a safe hedge in an inflation-weary world.” In the same year, Barron’s noted, “James Dines’ prediction—that the price of bullion would someday cross the Dow-Jones Industrial Average—begins to look like one of the most fantastic investment calls on record.”
Over the years, Dines continued to make controversial calls that would come to fruition. Financial Sense Wealth Management notes that Dines, after a trip to China in 1977, “predicted that ‘China would dominate the 21st Century’ after Mao died; he was the first to prominently recognize the bull market in internet stocks; he predicted a ‘uranium boom’ when the metal was at $8/lb before it rose as high as $138/lb; and a proponent of rare earth metals at their proverbial rock bottom before they skyrocketed.”