According to New York Times bestselling author Harry Dent, we should be lacing up our shoes and getting ready for another Great Depression. He believes 2009 is the beginning of the next long-term depression and the end of prosperity in every market. Why is Mr. Dent such a doom-and-gloomer?
The short answer is that three massive bubbles – stocks, real estate, and commodities – that have been booming for the past few decades have reached their peak and are going to deflate simultaneously. Toss in the peak of Baby Boomer spending in late 2009 or early 2010 and we’ve got, to use a completely overdone phrase, the perfect storm. Dent goes on to say that the coming depression will not be triggered by crashes in any or all of the markets but rather from a natural 80 year cycle.
Dent predicts the Dow could fall as low as 3,800 in mid-2012. That’s down another 50% from what is perceived by many as today’s already rock bottom lows. Here’s something else to ponder – the only absolute rock bottom of the market is zero. Until we hit that, there is still room to fall. And what of this futurist’s predictions? He could be wrong, right, or partially right but followers of this blog already know what a bad investment we consider the stock market to be. Imagine if it falls another 50%. Do you want your portfolio tumbling down along with it?
Now, more than ever, you owe it to your family’s financial future to investigate history’s best investment, real estate.
