-------- Harry Dent Jr
Global stock markets are poised for a crash by summer as Europe’s debt crisis and slowing spending by aging baby boomers put the brakes on global growth.
“It’s a replay of 2008 and early 2009 – only the recession goes deeper,” suggested the founder of Tampa, Fla.-based economics research firm HS Dent. “The 50- to 70-per-cent decline will happen in the next two to three years, but I think you are going to see the strongest part this year.”
“We told people to get 100 per cent out of stocks last Friday,” Mr. Dent said. “You might miss the last 2, 3, 4 or 5 per cent, but when it falls, it can fall so rapidly.”
“How are you going to stimulate an economy with an increasingly aging population?” he asks. “Look at how well it worked in Japan … Its market is still down close to 80 per cent, 20 years later.”
“Look at what your real estate was worth between 1996 and 2000. That is the range it will fall to."
He also expects gold- and silver-bullion prices to decline in the next crash, but he has only given a partial sell signal on these metals to his clients. “Gold and silver often rally a little longer than stocks,” he said. “I think gold [now around $1,630 (U.S.) an ounce] will end up at $740, and maybe even lower … I think silver will end up between $5 and $10 several years from now.”