Economist Predicts ‘Crash of a Lifetime’ in 2024

Renowned financial author and economist, Harry Dent, continues to stand by his bold prediction of a “crash of a lifetime” that he made last December. In a recent interview with Fox News Digital, Dent warned that the “everything” bubble, which has been inflating for 14 years, is yet to burst and when it does, it could be more devastating than the Great Recession.

Dent compared the current situation to the bubble of 1925 to 1929, which he described as a natural bubble without any artificial stimulus. He criticized the current approach of flooding the economy with extra money, likening it to drinking more to cure a hangover. He suggested that this strategy might enhance the overall economy in the long term, but the real impact would only be known when the bubble bursts.

As we approach the middle of the year, US stocks ended May with gains. The tech-heavy Nasdaq led the way with a 6.9% increase, followed by the S&P 500 at 4.8% and the Dow Jones at 2.3%. Despite these gains, Dent predicts a significant drop in the S&P and Nasdaq, and even a 98% fall for a strong stock like Nvidia.

Dent also expressed concern about the real estate market, which he believes is at the center of the bubble. He previously predicted that housing would return to2012 lows this year and stated that US homes have already increased by double or more what they’ll soon be worth. He also highlighted the trend of people owning multiple homes for speculation and the increasing number of residents in countries like China and Japan buying empty properties as collateral against a potential market crash.

Responding to critics who have labeled his theories as “crazy” and accused him of fearmongering, Dent stated that he simply speaks what he sees and doesn’t care if people don’t like it He dismissed the label of a ‘perma-bear’ and emphasized the unprecedented power that central banks have to print money out of thin air.

Dent believes that the safest place to hide during the impending crash is in the world’s safest bonds. He reassured that the US, being the largest economy in the world, will endure the downturn. He also suggested that if money can be printed to create a bubble, it can also be printed to pay off bonds.

Dent anticipates a major crash on the back end, similar to the pattern of the Great Depression, but in reverse. He believes this crash will cleanse the markets of excess, bringing them down to a level where the millennial generation can invest their savings for retirement in a healthier boom.

In December, Dent advised investors to move their capital out of the stock market in anticipation of the “bubble of all bubbles”. If he had to choose a new investment, he would pick bitcoin due to its volatility and potential for high returns.