US economist predicts 2025 stock market crash worse than 2008
Renowned US economist Harry Dent has issued a stark warning about an impending stock market crash that could potentially surpass the 2008 financial meltdown. In an interview with Fox News, Dent, who is also a best-selling author, highlighted the artificial nature of the current market bubble. He suggested that this bubble has been growing for at least 14 years due to an unprecedented influx of stimulus into the economy.
Dent predicts significant market downturn in 2025
Dent, known for his unique approach to economic analysis, predicted that the market bubble could lead to a crash even bigger than the one experienced in 2008-09. He stated, "Most bubbles go unrecognized for about five to six years before everything comes crashing, however, the current one is being stretched for a bit longer." Dent further forecasted that the S&P could plummet over 80% from its peak and the NASDAQ even higher by 90%, possibly in 2025.
Dent attributes market bubble to post-2008 monetary policy
Dent attributed the current market bubble to excessive money pumping and loose monetary policy following the 2008 financial crisis. He described it as a "bubble of all bubbles" due to inflated asset prices caused by hyperbolic money pumping. To combat the economic fallout from the COVID-19 pandemic, governments, including the US, injected substantial stimulus into their economies, keeping interest rates near all-time lows.
Dent's market crash prediction challenges recent gains
Dent's prediction of a significant market downturn challenges the recent gains in the US markets. The S&P 500 has risen approximately 13% year-to-date, while the tech-heavy NASDAQ has seen a gain of nearly 17%. Despite these positive trends, Dent remains firm in his forecast, warning that top-performing stocks like NVIDIA could also be affected, potentially experiencing a drop of up to 98%.
