Commenting on gold, Harry Dent, Chairman of HS Dent, said, “The markets have peaked and will continue in a bear market until 2024 and the Fed cannot do anything about it.” Here are Dent’s comments on the market…
Dent: We’re about to enter recession
Harry Dent said in an interview, “I think the market peaked for the S&P 500 on January 4th and we’re going down. “The Federal Reserve will eventually find out that its stimulus didn’t really work, and people will only find out when the markets crash,” he said. While the stock market has performed well over the past few decades, Dent said it was deceptive. He explained that the Fed’s “printing money” has kept the economy afloat so far. But when the collapse came, he said it would be worse than people thought. Dent, referring to the anticipation of recession, used the following expressions:
We are already about to enter a recession… There is no soft landing here. The Fed hopes it will. They don’t understand the underlying trends in the economy… We are so nervous, everything has bubbled… You cannot sustain a corpse.
Dent: The gold bubble is an asset
Dent bases his forecasts on demographic trends. Baby Boomers (born 1946-1964) believe we are about to enter a period of deflation as they pass away. “We have never seen a larger generation (Boomer) followed by a smaller generation (Generation Y),” Dent said. Baby Boomers caused the biggest boom in history. Since then, why has the (Fed) been subsidizing so much money? Because it is fighting a downtrend. The greatest generation in history is dying,” he said.
Dent stated that long-term US treasury bills will be the best performing asset. He also thinks that the price of gold will fall. “Gold is a bubble asset like everything else… (all) financial assets that are bubbles will collapse… I would say gold will drop to $900 to $1,000 in the next year or two,” he says. While Dent suggests that Bitcoin is the “biggest bubble” right now, he projects a price of “half a million to a million” US dollars by 2037 as the economy recovers. But he predicts a drop to 3,000-7,000 at first. “Bitcoin, I think, will be the new digital standard for money. If we had this crash in the next two years, the number one thing I would buy would be Bitcoin or Ethereum,” he adds.
