BackBoy, this is over…' Economist Harry Dent predicts 98% crash in Nvidia, 92% drop in Nasdaq. Here's why
Economist and financial author Harry Dent has issued a dire warning, predicting an imminent market collapse that will dwarf the Great Recession. Dent declared, ‘This is the crash of a lifetime,' cautioning that the prolonged 'everything' bubble is on the brink of bursting.
PremiumEconomist and financial author Harry Dent has cautioned of an impending market crash, which he predicts will surpass the severity of the Great Recession. In a recent interview with Fox News Digital, the 71-year-old highlighted that the current market stability is deceptive, as stocks ended May with gains. Dent emphasized that the "everything" bubble has yet to burst and when it does, it will be the "crash of a lifetime."
Harry Dent, founder of HS Dent Investment Management, is well-known for his forthright views on the U.S. economy. His 2009 book, "The Great Depression Ahead," was a New York Times Bestseller.
Dent explained that flooding the economy with extra money might seem to enhance long-term economic performance, but the true impact will only be visible when the bubble bursts.
As the U.S. stock market showed positive performance in May, with the Nasdaq up 6.9%, the S&P 500 rising 4.8%, and the Dow Jones increasing by 2.3%, Dent's warnings starkly contrast the optimistic market outlook. He pointed out Nvidia's recent performance, which saw its shares surpass $1,000 after a 10-for-1 stock split, marking an all-time high.
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"In 1925 to ‘29, it was a natural bubble. There was no stimulus behind that, artificial stimulus per se. So this is new. This has never happened," Dent stated during Tuesday's interview, citing past market collapses.
He elaborated, "What do you do if you want to cure a hangover? You drink more. And that’s what they’ve been doing," and added, "Flooding the economy with extra money forever might actually enhance the overall economy long-term. But we’ll only see when we see this bubble burst."
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Dent further explained, "And again, this bubble has been going 14 years. Instead of most bubbles [going] five to six, it’s been stretched higher, longer. So you’d have to expect a bigger crash than we got in 2008 to ’09."
Reflecting on the recent performance of leading stocks like Nvidia, Dent warned that the positive trend will not last. "I think we’re going to see the S&P go down 86% from the top, and the Nasdaq 92%. A hero stock like Nvidia, as good as it is, and it is a great company, [goes] down 98%. Boy, this is over," he said.
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