(Fox Business) Harry Dent, the outspoken financial author and economist, isn’t reversing course from his bold “crash of a lifetime” declaration this past December.
Speaking in an updated interview with Fox News Digital, Dent cautioned that the “everything” bubble has still yet to burst, and it may be a bigger crash than the Great Recession.
“In 1925 to ‘29, it was a natural bubble. There was no stimulus behind that, artificial stimulus per se. So this is new. This has never happened,” Dent said on Tuesday. “What do you do if you want to cure a hangover? You drink more. And that’s what they’ve been doing.”
“Flooding the economy with extra money forever might actually enhance the overall economy long-term. But we’ll only see when we see this bubble burst,” he added. “And again, this bubble has been going 14 years. Instead of most bubbles [going] five to six, it’s been stretched higher, longer. So you’d have to expect a bigger crash than we got in 2008 to ’09.”
As markets inch closer to the halfway mark of the year, U.S. stocks ended the month of May with gains as the tech-heavy Nasdaq stole the show, finishing up 6.9%. The S&P 500 was up 4.8% and the Dow Jones was up 2.3%.
Economist Harry Dent gave a detailed update on the “bubble of all bubbles” which has yet to hit the U.S. economy. (Fox News)
Nearly two weeks ago, tech and A.I.-heavy Nvidia announced a 10-for-1 stock split, propelling shares past $1,000 three days later, marking an all-time high.
“I think we’re going to see the S&P go down 86% from the top, and the Nasdaq 92%. A hero stock like Nvidia, as good as it is, and it is a great company, [goes] down 98%. Boy, this is over,” Dent stressed.
“We have never seen [the] government sustain a totally artificial bubble for a decade and a half, and see what happens after that,” he continued. “But I can tell you, there has not been one bubble, and this is far larger and longer, one major bubble in history that has not ended badly, period.”
The only edit to Dent’s prediction is the timing, noting market bottoms are likely to show sometime between early to mid-2025.
At the center of the bubble stands the real estate market. Dent previously predicted that housing would see 2012 lows this year, and claimed Tuesday that U.S. homes have already increased by double or more than what they’ll soon be worth.
“No time in history has housing been so widely owned and so many people having second and sometimes third homes just for speculation,” Dent said, while pointing out countries like China and Japan are seeing a rising number of residents buy empty properties as collateral to a potential market crash.
Dent estimates that a market bottom will hit the U.S. economy in early to mid-2025. | Getty Images
“If you understand what the real cycles are, you don’t have to buy the most expensive home in history right at the top of the market and then moan for 14 years while it goes through the next downturn, like ’29 to ’42 or ’68 to ’82,” the author expanded, “or what would have been, without all this $27 trillion stimulus, 2008 to 2022.”
Dent also responded to critics who have called his hypotheses “crazy” and accused him of fearmongering.
