Bubbles Don't Correct, They Burst!

Harry DentI keep going on the media and saying that we’re going to see the greatest bubble burst in modernrn history, after the greatest bubbles in history have clearly formed…

But everyone says this is not a bubble…

Because the central banks will keep supporting the economy and markets with more free money…

Because real estate is in tight supply and can only go up…

Because there is nowhere else to go but high-dividend stocks…

And because sovereign bond yields are going to negative, not just zero.

This is absolute BS!

Nothing lasts forever. You don’t get something for nothing, and that’s exactly what the central banks have created since late 2008 with their endless money printing and zero interest rate policies (which are now pushing desperately into negative territory) – neither of which has ever happened in history.

Doesn’t such desperation in policies make you wonder how weak the actual economy would be without such massive and never-ending stimulus?

The markets are so blind with free money and highly leveraged carry trades into bonds and stocks that they just don’t care about fundamentals anymore!

Earnrnings have been declining since late 2014, according to real GAAP or accounting standards. They have been declining for over three quarters even on the “funny money” standards… the ones that don’t count one-time losses, even though they keep occurring!

Productivity has been declining for years and is near zero. GDP has declined to just under 1% adjusted for inflation over the last three quarters… if it’s not actually lower. And the average wage has been declining since early 2000 and is close to what it was back in the early 1970s. No wonder the middle and lower-middle classes are pissed and supporting Trump and Sanders.

We’re already heading into a recession, if we’re not already in one. But the stock market is ignoring this because there’s simply nowhere else to go, as programmed by the Fed and central banks…

Just think – last Friday the Dow was off by nearly 400 points because one Fed governrnor said they might raise rates by a quarter frickin’ point in the coming months?

This is ridiculous!

It’s lemmings hurtling right over a cliff.

Do you want to be a sheep and follow the rest of these morons? Or do you want to preserve your wealth and have the unprecedented opportunity to cash in on The Sale of a Lifetime? That’s the title of my new book focusing on bubbles and why we never see them until it’s too late – and the extraordinary opportunity for those who can avoid the carnrnage.

The book is now available on Amazon starting today. Don’t miss it – and don’t be too late to sell at the top of this unprecedented global bubble in everything from stocks to real estate.

And if you don’t think bubbles can burst 80% or more in a matter of years, look at the commodity bubble that we predicted would burst many years back. Everything from oil to iron ore to cornrn to the general CRB Index is down 70% to 80%, with a bit more to come.

The commodity bubble proves that bubbles burst and don’t just correct.

And as it was the first to fall over the cliff… it may also be the first opportunity to reinvest in the years ahead

Again, the sale of a lifetime is ahead if you preserve your wealth… and even grow it with our investment systems that have proven track records in both boom and bust periods.

After commodities, stocks will once again become a buy… and so will real estate.

But “buy and hold” has been dead since late 2007. It won’t be a safe bet until at least early 2020, and likely late 2022 in the next global boom – but that will be concentrated more in emerging countries like India and Southeast Asia, while the U.S. will still tend to be the “best house in a bad neighborhood” of slowing demographics and debt deleveraging.

Don’t listen to the never-ending army of pundits that are defending this bubble. It is the greatest, most pervasive, and most perverse in modernrn history, and it will destroy your wealth faster than you can imagine when it finally bursts – especially into late 2019/early 2020 when all four of my longer-term cycles bottom together.

Make sure you read my latest book, The Sale of a Lifetime, for the full story on how to avoid this head-on collision… and how to protect and even grow your wealth when financial assets go on sale.



Follow me on Twitter @harrydentjr 

Harry Dent

Bestselling author and founder of Dent Research, an affiliate of Charles Street Research. Dent developed a radical new approach to forecasting the economy; one that revolved around demographics and innovation cycles.