Harry Dent, best-selling author and economist, has warned that the stock bubble in the U.S. today is the biggest in history and that the “greatest crash of your life is just ahead…”
Writing on his website EconomyandMarkets.com, Dent warned that
The story on Wall Street and CNBC continues to be that we’re in a correction and this is a buying opportunity. Even Warren Buffett joins the chorus of stock market cheerleaders for the skeptical public. Well, I agree with the skeptical public, not the experts here!
The bull market from early 2009 into May 2015 looks just like every bubble in history, and I’m getting one sign after the next that we did indeed peak last May.
I’ve been telling our Boom & Bust subscribers for months now that the dominant pattern in the stock is the “rounded top” pattern I show in the chart below: (see chart above)
After trading in a steep, bubble-like channel from late 2011 into late 2014, with only 10% maximum volatility top to bottom, the market finally lost its momentum… just as the Fed finished tapering its QE. That’s because the Fed was the primary driver in this stock bubble in the first place!
Read full article here
Dent is a successful newsletter writer and has written numerous best selling books over the years, most recently ‘Spending Waves: The Scientific Key To Predicting Market Behavior for the Next 20 Years’ and ‘The Demographic Cliff – How to Survive and Prosper During the Great Deflation of 2014–2019′ – detailing why we’re facing a “great deflation” after five years of stimulus — and what to do about it now.
With stock market valuations in the U.S. in particular looking stretched and U.S. stocks looking very overvalued, we agree with Dent that there is indeed a real risk of a material correction in stock markets as there was in 2000 and in 2007. In presentations to clients we have looked at and explained why we view these markets as over valued and having all the hallmarks of bubbles about to burst.
Given the risk of a new global financial crisis and the backdrop of a massively leveraged global financial system which has seen debt increase another $57 trillion in just 8 years, it would be foolhardy to dismiss Dent’s bearish prediction. Most economists, brokers, advisers and politicians would be likely to do – as they did regarding warnings we made in the 2005 to 2008 period, prior to the first global financial crisis.
Full article: “The Greatest Crash Of Your Life Is Just Ahead…” – Harry Dent Warns (GoldCore)