Stock market to crash worse than 2008: Harry Dent

Economist Harry Dent Predicts Major Stock Market Crash in 2025

Posted by NILESH WAGHELA 

Mumbai :  US renowned economist Harry Dent has issued a stark warning about an impending economic downturn that could rival the Great Depression of 1929. Dent, a Harvard Business School graduate, cautioned that the current booming bubble in the stock market could burst at any moment, leading to a severe global depression.

Speaking on the matter, Dent compared the upcoming recession to the market crash of the late 1920s, noting that while the previous depression occurred naturally, the forthcoming one is unprecedented. He explained, "What do you do if you have a hangover? You drank too much. This is happening right now. Extra money is being pumped into the economy to propel it, but it is not sustainable in the long run. Such a bubble can burst at any time."

Dent elaborated further, stating that while most economic bubbles burst within five to six years, the current bubble has persisted for 14 years. He warned that this could lead to a crash even more severe than the one in 2008-09. He predicts that when this bubble bursts, stock markets will plummet, with the Nasdaq potentially falling by 92 percent and the Standard & Poor's (S&P) by 86 percent. Stocks considered market leaders today, such as Nvidia, could see a decline of up to 98 percent.

According to Dent, the government has artificially sustained this bubble by injecting funds into the economy. "Just as drugs are given artificially to make one look better, governments are giving such doses to grow the economy. One thing is certain, if there is a bubble, it is bound to burst one day. The impact of this will start to be seen from the beginning of next year. This will have a big impact on the housing market."

Dent's predictions carry weight, as he accurately foresaw the bursting of Japan's asset price bubble in 1989 and the dot-com bubble in 2000.