Top US economist predicts stock market crash worse than 2008 recession
US economist Harry Dent warns there will be a stock market crash "bigger" than the Great Recession in the near future.
In an interview with Fox News, the 71-year-old financial author cautioned that there is a calm before the storm as stocks ended the month of May with gains. Dent asserted that the "everything" bubble hasn't burst as of yet, and when it does, it would be the "crash of a lifetime."
Harry Dent warns of a 'bigger' stock market crash
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Dent, who is the founder of HS Dent Investment Management, is a renowned economist known for being outspoken about his views on the US economy. His 2009 book, The Great Depression Ahead, appeared on the New York Times Bestseller List.
During Tuesday's interview, Dent said, "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," recalling brutal market crashes of the past.
He continued, "What do you do if you want to cure a hangover? You drink more. And that's what they've been doing," adding, "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."
"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," Dent further told the outlet.
In light of the recent gains of top-performing stocks like Nvidia, Dent stressed that the situation will not be the same for long. "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.
