Economist Predicts the “Biggest Crash of Our Lifetime” This Year, Recommends Bitcoin for Investment

Outspoken financial author and economist Harry Dent stands by his bold prediction of the “biggest crash of our lifetime,” made last December.

In a recent interview with Fox News, Dent warned that the “everything bubble” has yet to burst and could result in a downturn worse than the Great Recession.

“From 1925 to 1929, it was a natural bubble without artificial stimulus. This is new, and it has never happened before,” Dent remarked. “Injecting extra funds into the economy might strengthen it in the long term, but we’ll only know when this bubble bursts. This bubble has lasted 14 years, unlike most bubbles that last five to six years, so we must expect a larger crash than in 2008-2009.”

Predicting the “Biggest Crash of Our Lifetime” in 2024

As the market approaches mid-year, the U.S. stock market ended May with gains, notably with the tech-heavy Nasdaq up 6.9%, the S&P 500 up 4.8%, and the Dow Jones up 2.3%. About two weeks ago, tech and AI giant Nvidia announced a 10-for-1 stock split, and three days later, its stock price hit a record high of over $1,000.

Dent shared his perspective: “I believe the S&P 500 will fall 86% from its peak, the Nasdaq will drop 92%, and star stocks like Nvidia, despite being great companies, will decline by 98%. This is over,” he emphasized.

“We’ve never seen the government sustain a fully artificial bubble for fifteen years and then see what happens,” he continued. “But I can tell you, no bubble, especially one as large and enduring as this, has ended without a disastrous conclusion.”

Dent has adjusted his prediction slightly, now suggesting that the market bottom might appear in early to mid-2025.

The Real Estate Market at the Core of the Bubble

Previously predicting a drop in housing prices to 2012 levels, Dent noted on Tuesday that U.S. home prices have more than doubled, but their actual value will soon plummet.

“Never in history has home ownership been so widespread, with many owning second or even third homes purely for speculation,” Dent said, pointing to countries like China and Japan where buying vacant properties is becoming common as a hedge against a market crash.

“If you understand the real cycles, you don’t buy the most expensive homes in history at market peaks, only to lament the next 14-year downturn, like from 1929 to 1942 or 1968 to 1982,” Dent added. “Or without this $27 trillion stimulus, from 2008 to 2022.”

The Economy Slowing Faster Than Fed Expectations

Dent responded to critics who call his assumptions “crazy” and accuse him of fearmongering.

“I’m just saying what I see, and frankly, if people don’t like it, I don’t care, because you have to choose: do you tell the truth or make people happy?” he responded. “They call me a ‘perma-bear.’ That’s absolute nonsense.”

“From a historical perspective, nothing is more obvious,” Dent continued. “Many other historical bubbles were neither as steep nor as large. Why? Because we never realized the power of central banks printing money out of thin air.”

According to Dent, people find long-term trends easier to predict than short-term ones, which makes his stance appear radical.

“Aside from the safest bonds in the world, there’s really nowhere else to hide,” Dent said. “We are the largest economy in the world, and we will get through this downturn. If they can print money to create a bubble, they can also print money to repay debt.”

“During the Great Depression, 1929-1932 was the big crash, followed by a secondary crash from 1938-1942. Now it’s reversed because all our stimulus made the 2009 crash smaller. The big crash will come at the end,” Dent emphasized. “This will clear out all the excesses in the market, bringing it back to where it should be, so the millennials can have a healthier boom and put their savings into retirement.”

Dent Recommends Bitcoin as an Investment

Expecting the “bubble of all bubbles,” Dent advised investors in December to withdraw from the stock market. If he had to choose an investment, he would opt for Bitcoin.