One economist is adding to his dire predictions that the US will face a stock market crash worse than that during the 2008 financial crisis.
Harry Dent first warned in December last year that the “everything” stock market bubble was about to burst, causing “the biggest crash of our lifetimes”.
“If my predictions are correct, this will be the biggest crash in our lifetimes, and most of it will happen in 2024,” he previously told Fox Digital.
Given that he predicted the accident would happen by May, it appears that his critics who called him “crazy” were right.
But in a new interview, the Harvard Business School graduate said he stands by his views: For example, he said the benchmark S&P 500 will plummet 86 percent.
But he acknowledges that the market bottom is likely to be seen in early to mid-2025.
Economist Harry Dent has reiterated his warning that the stock market is on track to suffer an even worse crash than the 2008 financial crisis.
Dent is an economic analyst and best-selling financial author.
He reportedly accurately predicted Japan’s asset price bubble and the long recession that followed, which burst in 1991. He also warned about the US housing bubble, which burst in 2007.
Dent argues that the crash is caused by an overvalued market and excessive stimulus, and says it will cause a much deeper recession than other economists have predicted, with tens of millions of people losing their jobs.
A stock market crash will also impact Americans’ retirement accounts. Most people have at least a portion of their 401(k) or individual retirement account invested in the Dow Jones, S&P 500 or Nasdaq.
The worst downturn in many people’s lifetimes would surpass the hardship felt after the Great Recession of 2008, the worst economic downturn since the Great Depression.
“1925 to 1929 was a natural bubble. There was no artificial stimulus per se behind it. So this is new. We’ve never seen anything like this before,” Dent said Tuesday.
“If you want to cure a hangover, what do you do? Drink more. And that’s exactly what they’ve been doing.”
“Pumping extra money into the economy forever may boost the overall economy in the long run, but we won’t know until we see this bubble burst,” he added.
“And this bubble has lasted for 14 years. Unlike most bubbles, [going] “The 5-6 year stretch is higher and longer. So we should expect a bigger crash than we saw in 2008-2009.”
U.S. stocks ended May on an upward trend, with the Nasdaq up 6.9%, the S&P 500 up 4.8% and the Dow up 2.3%.
But Dent argued that “the S&P will fall 86% from its peak and the Nasdaq will fall 92%.”
“Hero stocks like Nvidia are great, they’re a great company. [goes] It’s down 98 percent. It’s over.”
“We have never seen [the] The government will maintain this entirely artificial bubble for 15 years and then see what happens.
“But I can safely say that there has never been a bubble in history that didn’t have a bad ending. This one is much bigger and longer.”
He says people will be the ones hurting “the most” from a property market crash, with house prices expected to fall to 2012 levels.
Dent slammed those he accused of stoking fear and tension among Americans.
“I just say what I see, and frankly, I don’t care,” he said. “If people don’t like it, [have] The choice you have to make is: “Do I tell the truth or do I make people happy?”
“They call me a ‘permanent bear’. This is complete nonsense.”
He added: “When you look back at history, nothing could be clearer.”
“Many other bubbles in history have not been as steep or as large.”
“Why? We didn’t realize that central banks had so much power that they could print money out of thin air.”
Mr Dent claimed in December last year that the “everything” bubble had burst, causing “the biggest crash in our lifetimes” and the effects would be felt by May.
But critics have branded his dire predictions “crazy” and accused him of fear-mongering.
Dent warned people to move their money out of the stock market before a “bubble within a bubble” hits.
But Dent doesn’t think any looming collapse is necessarily a bad thing.
He said: “The big crash will come in the second half.”
“This will remove all the excess from the market, allowing the market to fall to where it should be. As a result, millennials will enjoy a healthier economic boom and be able to invest their savings for retirement.”
Economists have warned people to pull their money out of the stock market before a “bubble within a bubble” hits.
In recent weeks, leading bankers and even powerful former CEOs have issued dire warnings about the U.S. economy.
In May, Jamie Dimon, chairman of JPMorgan Chase, the world’s largest bank, said: The worst outcome is U.S. Economy “Stagflation.” This is inflation It continues to rise, but unemployment is high and growth is slowing.
Economists believe stagflation, last seen in the United States in the 1970s, would be worse than a recession: it would cause stock prices to fall and hit 401(k) plans and other retirement savings.
