Market Crash Alert: Famous American economist Harry Dent, who was a student of Harvard Business School, has warned of a big market crash in 2025. He says that this crash can be even bigger than the market crash of 2007-2008. According to Dent, this is a bubble that can burst anytime. In 1989, Dent predicted the bursting of Japan’s asset price bubble, which proved to be correct. After this, in 2000, he made a similar prediction about the dot com bubble. He proved to be correct even then.
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Dent bases his prediction on demographic trends, economic cycles and market analysis. In a conversation with American TV channel Fox, Dent said, “There was a natural bubble from 1925 to 1929. There was no problem created by people themselves behind it. This is new. This has not happened before. What do you do when you want to get rid of a hangover? You drink more. And that is what they (market participants) are doing. Flooding the economy with extra cash is expected to benefit the economy in the long term. But we will see when this bubble bursts.
Situation will be worse than 2007-08
He said that when this bubble bursts, the fall in the market could be even bigger than the crisis of 2007-08. He said that S&P could crash by 86 percent and NASDAQ by 92 percent. According to Dent, Nvidia, which looks like a very strong stock right now, if its share crashes by 98 percent, then understand that everything is over. If what Dent is saying happens, then the investors will suffer losses worth millions of dollars, from which it will not be possible for the market to recover for a long time. Dent says that usually bubbles burst within 5-6 years, but this bubble has been going on for 14 years.
When will the fall come?
According to Dent, this fall can happen anytime between the beginning and the middle of next year. He has cited the housing market as one of the main reasons for this fall. It is worth noting that the housing market also contributed a lot to the crash of 2008. According to Dent, “This bubble has been created by the government…if you look at human history, you will find that nothing comes for free and bubbles always burst. The possibility of this fear coming true is much more than people are guessing.”
