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Market crash to last until 2024; Gold to hit $900 before a rebound - Harry Dent
Markets have peaked and will continue in a bear market until 2024, and the Fed can do nothing about it.
That's according to Harry Dent, President and Founder of HS Dent. Dent spoke with Michelle Makori, Kitco News's Editor-in-Chief and Lead Anchor.
"I think the market has already topped, January 4th for the S&P 500, and we're heading down," said Dent. "And the Federal Reserve is going to find out that their something-for-nothing stimulus didn't really work in the end, and people are going to find this out only when things crash."
Although the stock market has done well over the last few decades, Dent said this is deceptive.
"People are now thinking it can only go up," said Dent. "You have to get shocked out of that, you know? History shows a 40 percent crash within the first several months."
He explained that the Federal Reserve's "money printing" has sustained the economy up until now. Yet when the crash comes, it will be worse than people think.
"We're about to go into a recession already… There's no soft landing here. The Fed is hoping for that. They don't understand the underlying trends of the economy… We are so overstretched, the biggest bubble in everything… You can't keep a dead body going."
Dent bases his predictions on demographic trends. He believes we are about to enter a deflationary period as Baby Boomers die.
"We've never seen a smaller generation [Millennials] following a bigger one [Boomers]," said Dent. "[The] Baby Boomers caused the greatest boom in history… from 1983 to 2007. And ever since, why have they [The Fed] been stimulating so hard?... Because you're fighting a downtrend. The biggest generation in history is dying."
Dent opined that long-term U.S. treasury bonds will be the best-performing asset. He also thinks that gold's price will fall.
"Gold is an asset that has bubbled, like everything else… [All] financial assets that bubble will crash… I would say in the next year or two, [gold will be] down to $900 to $1,000 [USD]."
Although Dent posits that Bitcoin is the "biggest bubble" right now, he foresees a price of "half a million to a million" U.S. dollars by 2037, as the economy recovers, but only after it crashes to the range of $3,000 and $7,000 first."Bitcoin is going to be the new digital standard, I think, for money," said Dent, evoking the gold standard. "If we have this crash I'm predicting in the next two years, the number one thing I'd buy would be Bitcoin or Ethereum, coming out of it."
When it comes to the Ukraine conflict, Dent explained that Putin was acting unwisely. "[Putin] is being aggressive," said Dent. "The world could go into a downturn, and he could be blamed for triggering the downturn, even though it wasn't really him… I think it's the death of Putin… Putin has bad timing here." Dent said that the world will go into a global "depression," which could force a peaceful resolution of the Ukraine conflict.
To find out which asset is offers the only place of safety in the next market downturn, watch the interview above.
Follow Michelle Makori on Twitter: @MichelleMakori
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