Harry Dent: Crash of About 80-90% in 2022, Recovery in 2024

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Investor Harry Dent, who made some extraordinary and accurate predictions about a bullish stock market in the ’80s, now predicts a crash of 80 to 90% within months – by June.

He’s now very bearish. The bubbles in every sector must burst, and it will be worse than the 1929 crash. He labels it the New Great Depression but it will end in 2023 or 2024.

Instead of pre-war German hyperinflation as Peter Stock sees it, he sees deflation as the result. Although, it will be driven by inflation. People will buy less and there will be fewer goods.

This will be the result of decades of poor monetary policy, according to Dent, who says the recovery since 2009 was solely driven by the printing of money. In addition, he says the US can’t remain the world currency for much longer due to demographics, but China is in worse shape. Much of their real estate is unoccupied and that’s where most of their investments are placed.

Dent says the global economy is “in the riskiest market since 1929.”

According to Dent, the “biggest crash of all time” is expected to occur before June. The cause of this crash will be “fake profits, fake interest rates, and super-high valuations” on the stock exchanges. The global economy is in an “untenable situation”. After all, this large global bubble has been building continuously since the financial crisis, he says. But so far, the US Federal Reserve has succeeded in preventing the bursting of this bubble by constantly “printing money”.

He told the financial portal “Think Advisor“:

“It’s the riskiest market since 1929. The difference is that the market was not so global in 1929. This is an all-bubble. And with the $1.9 trillion fiscal stimulus law, we’re poised to stimulate about 40 percent of GDP just to prevent the economy from slowing down. This will go down in history as the greatest madness. At a later date, people will ask themselves, ‘What did they smoke back then?'”

“This could be the biggest bubble crash of all time – stocks, commodities, real estate. The next crash is the beginning of the next big [economic] downturn, which will be much worse than the one of 2008-2009.”

“The crash will probably come by the end of June, probably sooner. The S&P will fall to 2,100 and that would be a 47- to 48 percent drop from recent highs, though it could fall to 4,000 first. The next crash will be worse than the last because it will come from higher levels and [fall] to lower levels.”

“When the economy finally collapses after so much stimulus, economists will turn from an endless bull market to an endless bear market. They will say, ‘Now we are in a depression of more than ten years, like in the 1930s.’ But I’m going to say, ‘No, this thing is going to be hell, but it’s going to do its job very quickly. 2024 will be the end of it.’ By 2023 or 2024, we will emerge from this crisis. A Spring boom will then take place.”

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