An outspoken economist, Harry Dent, is making a dire prediction about the markets in the new year.
Dent, who spent the majority of his career analyzing proprietary research, is known for his unconventional views and against-the-grain predictions. In an interview with Fox News Digital, he warned that 2024 will be the “biggest single crash year we’ll see in our lifetimes.”
According to Dent, this crash has been a long time coming, fueled by overvalued markets and excessive stimulus spending by central banks. “Since 2009, this has been 100% artificial, unprecedented money printing and deficits; $27 trillion over 15 years, to be exact. This is off the charts, 100% artificial, which means we’re in a dangerous state,” he explained.
Dent believes that this “everything bubble” started in late 2021 and that the first signs showed in 2022 when the Nasdaq was down 38%. He predicts that the new year will bring the “B wave” of the crash, characterized by a rapid rise in stock prices followed by a sharp fall.
“This Is Off The Charts”: Economist Claims 2024 Will Bring ‘Biggest Crash Of Our Lifetime’ In US https://t.co/XFsgOMErUa
— zerohedge (@zerohedge) December 21, 2023
While recent rallies have given investors hope for a mild recession, Dent remains firm that this bubble will burst in 2024. He believes that it will be even worse than the Great Depression, with an 86% crash in the S&P and a 92% crash in the NASDAQ. Cryptocurrency, he predicts, will see a staggering 96% crash.
Dent also criticized those who are playing into the year-end market rally, warning Americans to “get out of the way.” He encouraged people to take advantage of the current high stock prices and get out for six to 12 months to minimize their losses in case he is right about the crash.
The economist also warned that the Fed’s recent hints at raising interest rates will only make things worse. “Depressions are different from recessions. They go much deeper, and they end up in deflation,” he explained. “And when you stop that gravy train and reverse the tightening, you’re going to be in a depression within a year, not a mile.”
Dent predicts that the effects of this crash will be felt for the next 12 to 14 years, causing a widening wealth gap as the rich get richer and the poor get poorer. However, he also believes that there will be a new boom in the future, led by the millennial generation.
