In March 2008 Harry Dent predicts the coming depression in America.
Once every 80 years there is a shakeout or a depression, followed by a boom or a bubble. In the early 1900′s we saw tech stocks and bubbles, almost exactly like we see today. The last greatest bubble peaked in 1929 and we then had the biggest crash in the early 1930′s.
We’re seeing that exact same kind of thing happening today. Unlike any other cycle, this is a long term crisis not a short term crisis. and it is a deflationary one, even though inflation will be the theme as we recover. As we recover into 2009 when we finally trigger a collapse it will be the implosion of the banking system like we are already seeing the beginning of. It will contract credit, it will contract money, and will actually cause DEFLATION and that means the prices of everything will fall.
The way to survive this is to sell off unnecessary assets in your business, in your home, real estate, and certainly your stocks. Don’t sell them right away, wait for stocks to rebound in 2009, probably in mid 2009 then start selling, wait for real estate to bottom out and then start selling what you need to sell.
This is the one time your life when you should hold cash and be patient and you will be able to pick up lots of good deals and assets as everyone else is losing them.
The worst of the housing crash will probably happen between 2011 and 2013, the worst of the stock crash will happen in late 2010 to mid 2012
“We think the DOW could go to 3800 that is the 1994 low or 7200 at best that is the 2002 low.”
60% of Americans think we are heading into the next great depression right now. That is wrong, we will get this reprieve first, and then by mid to late 2009 people will start to think the government did the right thing and the recession is over.
Imagine a tsunami, and you are seeing the ocean pull back right now, you don’t know whats coming, but you’re about to get hit with a massive wall of water.
We know something is wrong, but most people do not know that we are going to see the biggest worst downturn in our entire lifetime.
If you’re not prepared its going to be very very painful.
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