The government will keep this bubble going no matter how ridiculous it is. You can blow up a balloon only so far, and then it pops. Why hasn’t it?īecause bubbles go until they blow. You told me in an interview this past July that the market bubble could blow at the end of that month, if not September. It will take two to three years before it goes all out, but most of it will happen in a year. You can see the biggest crash work to your advantage in just one year.
What opportunity will this bust offer investors? It will be the biggest first two- to three-month crash, bigger than the first 1929 crash or the first 2000 crash.
It’s been put off for so long that when it finally goes, it’s going to be harder and faster than usual. When the stock crash hits, it’s likely to drop from the highest point to the lowest point any in history, including 1930-1932. What, if anything, do you expect to be different about this big downturn? If the market doesn’t start to weaken by the first quarter of next year, then you shouldn’t listen to me. I think the sign will be that they keep going up in December, but January starts off on the weaker side.Īt least be out of stocks by Christmas. But somewhere between mid- and late-December, we’re done. When that money disappears, that’s when you get deflation, and that’s when the bargains come up and you’re buying everything on sale. They’ve got it in stocks and bonds and real estate. It won’t last as long as the Great Depression in the 1930s because we already started the process in 2008.Ībout the crash that you foresee, how do you see things rolling out? The economy isn’t going to get strong again until 2024.īetween now and then we’ll have the biggest recession, or a depression, of our lives. We’ll be in a recession by the first quarter of 2022. You’ve got to protect your money to take advantage of the sale that’s coming when stocks go down 80%, or else you won’t have money to buy.
The biggest stock market crash of our lifetime will be in 2022. What should investors be thinking about, then? That’s when investors finally wake up and say, “This ain’t working anymore: Darn, I always wondered how we could grow by printing money out of thin air.” People know this is stupid. HARRY DENT JR.: In two to three months, the market will go down to 2,000-2,200 from what it is now. THINKADVISOR: What’s your forecast for the stock market? We can’t squeeze any more growth and juice out of this orange.” He was speaking by phone from his base in San Juan, Puerto Rico. However, later in the conversation, the author of “What to Do When the Bubble Pops” (G&D Media-2020) offers upbeat, specific advice on bonds. In the interview, Dent contends that 21% of companies are “barely limping along” and are doomed to fail in the recession he sees coming soon.
#Hard west crashing free
“The economy is dropping like a rock,” he insists.ĭent’s HSD Publishing, an independent research firm, generates monthly newsletters that he and Rodney Johnson, HSD president, each write.ĭent also publishes his and Johnson’s insights in a free daily newsletter. He cites GDP growth decreasing from 6.7% in the second quarter to 2% in the third as solid evidence of a recession en route. It’s just going to go to sleep and pass out.” The essential problem, he says, is that “the market bubble is expanding the economy is slowing rapidly.”Īnd “you can’t wake this thing up with another cup of coffee. Indeed, in the first two to three months of 2022, it will drop more than 50%, Dent, a Harvard Business School MBA, foresees. “Stocks are on their last legs,” he declares, predicting that the market will plummet 80%. Time for rehab!”ĭent correctly called Japan’s 1989 bubble bust and recession, the dot-com crash and the populist surge that made Donald Trump president, although detractors take his forecasts with a few grains of salt. He’s been addicted to free money now for 12 years. “You can’t give that drug addict another shot to get him back up.
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