Harry Dent, economist and author of several best-selling books, has warned that the biggest crash of a lifetime will happen “between now and about mid-June.” And he emphasized: “People are saying that this is not a big adjustment, but a big crash, and in your lifetime … You will know that it is something you have never seen before.”
Harry Dent’s “big crash” warning
Harry Dent, founder of HS Dent Investment Management and author of several best-selling books, warned in an interview with David Lin published Friday that the biggest crash of his lifetime will likely occur by mid-June. Dent stressed:
This will never happen again. We will never see a bubble economy, and our children probably won’t see a bubble economy in decades … at best, once in a lifetime.
He explained that the biggest crash he foresees should have been the 2008-2009 crash, noting that the S&The P500 fell 57% at the time. He said, “About a year and a half after that crash, central banks intervened and started printing money at unprecedented rates… So that recession failed to do its job of flushing out the biggest debt bubble in history,” Dent explained, adding:
I predict an 86% [decline] in the S&. 92% in the P500 and Nasdaq after this crash…Bitcoin will probably go down even more, 95% and 96%.
Dent expects the crypto market to crash alongside stocks,with BTC falling 95% to 96% from its November 2021 high.” Bitcoin will fall from $69,000 to about $3-4,000,” he said, adding, “exactly as Amazon and Dotcom did.”
The economist has repeatedly warned about the biggest crash in his lifetime. He noted that after the last warning, the NASDAQ fell 38% last October.” This is only the first wave of declines. The next wave has already begun, and the NASDAQ could drop to $8,000 in this next wave alone. That would be down a little over 50%,” he elaborated.
“That’s when people will see that this is not a big correction, it’s a big crash, and in your lifetime … They will know that it is something they have never seen before and that even millennials will not see a bigger crash than this.” Dent opines.
As for why the crash was later than previously expected, economists attributed it to central banks declaring war on the recession. Never before has a central bank declared war on a recession and said, “We will not let the economy decline.” However, Dent noted that even with the unprecedented amount of money printed, “we will continue to fall back into recession.” He emphasized: “Central banks have declared war on the free market. That is the problem.”
The economist warned, “We are about to enter this third wave,” and emphasized that he does not believe the Federal Reserve can stop this wave.” I think it will creep up before we can reverse the tightening,” he predicted, adding:
We are not cleaning up the massive debt and overvaluation of the largest financial asset bubble in all. Never before has there been such a financial asset bubble in everything. Bursting this bubble and cleaning up the excesses is what we must do. And I believe we are now in that process.
Dent noted that the Fed had overstimulated the economy and had to “tighten hard,” emphasizing that the Fed has “pushed rates higher and tighter” than ever since the early 1980s.” In other words, he exclaimed, “This is serious tightening.” Now they are tightening, and they think the economy underneath can handle it.” But, Dent argued: but, Dent argued: but, Dent argued: but, Dent argued: but, Dent argued: but, Dent argued: but, Dent argued: but, Dent argued. No, the underlying economy has been weak since 2008 and won’t get stronger until years from now.”
Dent further explained that what appears to be an adjustment will turn into “a 1929-1932-like crash, down 86% in the S&P 500,” and emphasized that this is “our best estimate at this point.” The economist explained: “Having experienced a first wave down, a second wave up, we are already in the third wave. He elaborated further:
The third wave is usually the strongest and hardest wave, and I think most of that will happen between now and the end of the year. And the biggest of that third wave will hit between now and mid-June.
“As most people know, it’s not easy to time the market, but I’m timing the market because this is very important.” Dent said.
Image Credits: Shutterstock, Pixabay, Wiki Commons, lev radin.
