Why Stocks Could Crash by 40% in April
https://www.youtube.com/watch?v=lg51JrFpLzk&feature=emb_logo (https://www.youtube.com/watch?v=lg51JrFpLzk&feature=emb_logo)
Harry Dent? He's a New York Times best-selling author who has made some shockingly accurate predictions over the last several decades. In fact, using an indicator he and his team developed called a "Spending Wave," he not only correctly predicted the bursting of the Japanese bubble . . . he predicted the 2008 financial crisis at the exact same time all the way back in 1988. Now he says we will see a 40% stock market crash by April that takes years to recover from. In fact, he says that what could happen to the U.S. is nearly identical to what happened in Japan 30 years ago. But let's look at what did happen . . . Japan, Dec. 25, 1989 It had been ten years of unprecedented growth for the small island nation whose post-WWII manufacturing domination had swept the world. Most people in the U.S. drove a Toyota . . . Suzuki . . . Nissan . . . Honda . . . Mazda . . . Subaru . . . Mitsubishi . . . Kawasaki . . . Yamaha . . . Hardly a "cheap" American-made Ford, GM, or Chevy could be seen on America's interstate.
Nearly every electronic device Americans used was a Japanese brand – Sony, Panasonic, Hitachi, Toshiba, or Canon. Americans shot Fuji Film to take family photos and children gathered around to play the newest Nintendo game. At construction sites in U.S. cities – Komatsu bulldozers and cranes moved the earth and buildings were constructed out of Nippon Steel. Japanese Real Estate was so valuable that the Imperial Palace in Tokyo was worth more than the entire state of California ...
But then the bubble burst . . .
- The Nikkei 250 index proceeded to drop by 63% over just the next two years.
- By March 2009 – it was down over 80% from its 1989 highs.
- Right now, it is still 30% away from its 1989 highs... over 30 years later.
Harry wasn't looking at graphs, charts, currencies, inflation, macroeconomic events or boom-and-bust cycles. In fact, he wasn't looking at any of the "traditional" metrics one might use to predict a market crash. Instead –
he was looking at people. Particular demographics and how they spend their money as they age. Something economists don't know much about... it's the most predictable thing in the economy:
the spending of households. You see, from about the age of 25 to 47, people go on a "spending spree" ... He realized at that time Japan was at the top of their generational spending wave. He estimated that Japan's equity markets were about to collapse and that it would be around 2007 – 2008 that the U.S. reached a similar peak. This is why Dent says he can predict spending in any country in the world, and how he was able to call the future
(https://marketoracle.co.uk/images/2016/Apr/harry-dent-stock-market-crash.jpg)
Oops!
The U.S. has essentially printed $24 trillion globally to keep the economy chugging along at a measly 2% growth rate while allowing people to borrow ever more money at zero interest rates. And the stimulus isn't helping . . . it's just making things WORSE.
.. Market Crash in April He believes that stocks will crash by 40% in April, essentially continuing the selloff that started in March 2020. Except, this time it, will take YEARS to recover – similar to what's happened in Japan. Read more ..
Market Crash: Why Stocks Could lose 40% in April 2021 (https://www.wyattresearch.com/article/market-crash-why-stocks-could-drop-40-april-2020/)
https://www.wyattresearch.com/article/market-crash-why-stocks-could-drop-40-april-2020