Harry Dent Sees A Big Crash Coming, Urges Investors To Prepare

The Daily Reckoning ^ | 10-20-2009 | Rocky Vega

[blam]

Harry Dent Sees A Big Crash Coming, Urges Investors To Prepare

By Rocky Vega

10/20/09 Stockholm, Sweden – In an interview with Moneynews, Harry Dent, author of The Roaring 2000s Investor and The Great Depression Ahead, said that “deflation in turn will trigger crashes in stocks, bonds and real estate.” According to Dent, the deflation will be caused by “way too much debt in our system,” and he advises investors to stay in cash.

His debt calculation includes corporate at $11 trillion, government at $14 trillion, and the financial sector at $17 trillion. The solution he suggests is that “we have to restructure this debt.”

He goes to say that he expects the deficit to get up to $3 trillion in the next two years. It’s an urgent prediction that’s roughly in line with our take on the markets. It’s also a useful insight to take into consideration when you’re planning your personal investing strategy. Dent is part of a growing chorus of voices warning about impending financial danger.

[snip]

[blam]

Producer Prices Plunge

[unkus]

ping

[2banana]

“The best protection: It’s the opposite of inflation. It’s not gold that will bail you out. It’s cash, T-bills,” Dent recommends

“Just preserve your money. Sell assets you don’t need. Cut your costs. Generate as much cash flow as possible and wait for all these assets to fall.”

He thinks housing prices will ultimately drop 50 to 60 percent from their peak, and stocks 60 to 80 percent.

“You’re going to be able to buy everything much cheaper,” Dent says. “So you want to preserve your cash. And if you’re a more aggressive investor, you simply bet against the market.”

[Signalman]

Here’s the video to watch:

http://video.newsmax.com/?bcpid=20972460001&bclid=22770166001&bctid=44979113001

[scottteng]

“Harry Dent Sees A Big Crash Coming”
This is news? Harry Dent has been seeing a big crash coming for at least the 20 years I have been hearing his ads on talk radio. Even a broken clock is right occasionally.

[Kartographer]

As has been posted a number of times: “food, guns, ammo, and everyday common commodities (soap, toilet paper, paper towels, etc..) are good investments now."

[Balding_Eagle]

BTTT

[Osage Orange]

Ditto that!

[Kartographer]

So maybe this is his time to be right?

[Signalman]

Harry Dent has been seeing a big crash coming for at least the 20 years

Not correct. Back in the early '90s recession, Dent predicted the subsequent boom that occurred in that decade, while most economists were saying the 90s were not going to be good for stocks. He also said in his book that came out about 5 years ago, that the markets, after rising from 2002 to 2009, would begin to sink beginning in mid to late 2009 for a number of reasons, but mainly because of demographics, i.e, the baby boomers would be retiring en masse and not spending as they did in the past. This would be a major factor in putting the brakes on the economy and causing the stock market to decline.

[silverleaf]

Dent’s previous book was about the boom coming in the 90’s?

He way over-predicted the DOW and has taken flak for that.

His latest book “The Great Depression Ahead” dates from 2008. It’s an interesting read, and easy to track whether what he predicts come about now.

I got out of market late summer at 9800, and looking for a hard 2010-2011 ahead.

http://www.youtube.com/watch?v=e_JzAEzYLt4

[diamond6]

He’s been hanging out with Gerald Celente.

[HighlyOpinionated]

The Commercial Real Estate Market is going to crash in 2010. It will be the total undoing of the sitting president. There’s no money to bail out any of them out.

Lots of businesses are closing down. I drove toward Atlanta yesterday (from North Georgia) and saw eight Strip Malls EMPTY, and four huge EMPTY office buildings. There were half a dozen Auto Sales Lots EMPTY. There were two Marinas and one RV lot empty. My favorite Discount Beverage store was EMPTY.

If you own Commercial Property, you might want to do your own research. (My info came from a Real Estate Broker in South Alabama.)

[Dewey Revoltnow]

What if cash becomes worthless due to hyperinflation or a conversion to a one-world currency that is unfavorable to the U.S. dollar on exchange?

[Dewey Revoltnow]

As has been posted a number of times: “food, guns, ammo, and everyday common commodities (soap, toilet paper, paper towels, etc..) are good investments now."

And baked beans. Plenty of baked beans. Because if for no other reason than it will provide plenty of laughs.

[litehaus]

Harry Dent has been seeing a big crash coming for at least the 20 years

Thought he was the dude who said ---- DOW 30,000 !!

[Kartographer]

[cicero2k]

Dent is a demographics follower. Part of his theories are based on the fact that enonomies peak when the population cohort peaks at around age 47. This is the age where people make/spend the most. It is predictable, and stands up in historical scrutiny. Japan went through this peak (47 year old cohort) in the late 1980’s and their economy has not grown since. Our peak was in the late 1990’s. China/Brazil/India are approaching. Muslim countries no where near, but their economies, sans oil are pretty scant anyway.

Personally, sold the large house, moved to cash in early 2008.

[Jack Hammer]

Okay... say he’s right. So you convert to cash, and then the irresponsible stooges in government print up so much cash that it becomes essentially worthless; what then?

I mean, at some point it becomes impossible to defend against all the nightmare scenarios; so... waddya do???