In the first half, economist specializing in demographics, Harry Dent, discussed the cyclical nature of market bubbles and why he expects a crash to happen no later than next year, with late 2017 seeing the sharpest crash. According to his research, bubbles build exponentially, but they crash twice as fast, especially when it comes to stocks. Typically, half of the crash happens in the first two or three months, so if you wait to see if the market will reverse course, you can lose heavily, he remarked. He predicts this next crash will be worse than 2008, and the housing market will fall across the globe. The first sign of the coming downturn of the market was the bubble crash in the Chinese stock market, and he sees Italy falling into a situation like Greece, with Europe unable to bail them out. This European crisis will presage America's tumble, he suggested. Dent has characterized this coming market crash as the deepest one in our lifetime, with $120 trillion disappearing. However, he views this as a needed economic reset and recommended that people get out of the stock market before the crash, so they can buy back in when the market is at its low point, and end up making a lot of money in the process.
Website(s):
hsdent.com harrydent.com saleofalifetime.com
Book(s):
The Sale of a Lifetime: How the Great Bubble Burst of 2017 Can Make You Rich The Demographic Cliff: How to Survive and Prosper During the Great Deflation of 2014-2019 The Great Depression Ahead
Poster Comment:
Near zero interest rates may have a stabilizing effect. A good deal of old housing stock is being demolished and replaced by high-priced dwellings which few can afford during a poor job market.
In Canada's case the 75-cent Harper buck may drop to 50-cents if oil exports don't materialize but food imports have to continue unless replaced by a local greenhouse system.