Expert warns 80-90% plunge is not out of the question
Harry Dent, who received his MBA from Harvard Business School and is Founder of HS Dent Investment Management, believes exorbitant debt, years of unfettered accommodative monetary policy, diminishing central bank efficacy, aging demographics, and lofty stock and real estate valuations will lead to a day of reckoning. Dent opines:
– “It should not be a surprise that I expect the S&P 500 to lose about two-thirds of its value over the completion of the current market cycle,”
– The market will soon come to the realization that “no amount” of stimulus can “put Humpty Dumpty back together again.”
– And, a deeper downturn to occur early next year. “When this happens, you don’t get a 30 or a 50% stock correction. You get 80 to 90.”
With Dent’s comments as a backdrop, consider the recommendation from Jared Dillan, market strategist from Mauldin Economics
“…the biggest reason to own gold is that it smooths out the volatility in your investment portfolio. Add a little bit of gold, and you’ll pretty much get the same overall returns. But you’ll cut your volatility in half.”
“This is why I encourage my readers to allocate 20% of their investment portfolios to gold.”
(2020, September 13) ‘The worst crash in our lifetime’: One market expert says stocks are screaming towards a Great Depression-like setup in early 2021 — and warns an 80% to 90% plunge isn’t out of the question. Retrieved from https://highsocietyinvestors.com/2020/09/13/the-worst-crash-in-our-lifetime-one-market-expert-says-stocks-are-screaming-towards-a-great-depression-like-setup-in-early-2021-and-warns-an-80-to-90-plunge-isnt-out-of-the-question-2/
Dillon, J (2020 May, 5) Gold as an investment is made for times like these. Retrieved fromhttps://www.marketwatch.com/story/gold-as-an-investment-is-made-for-times-like-these-2020-05-05
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