Harry Dent: Huge Stock Market Crash Likely Within 10 Months

When this bubble bursts, there's going to be deflation, and all financial assets will go to nothing. U.S. Treasury bonds are a deflationary play after a bubble. 

You need to hold them only during the crisis, probably about two, maybe, three years. They'll go up in value.

When they skyrocket and stocks are down 80% or 90%, gold is down 50% or 60%, corporate bonds are down 40%, junk bonds are down 70% or 80%, real estate is down 50% or 60% and you know you're near the bottom, that's when you sell the bonds and start looking to get back into good long-term stocks and real estate.

What would you personally buy when you think the downturn has bottomed?

Probably bitcoin, the leader in crypto. I'd buy Nvidia and all [other] leaders of what's new.

Would you buy Nvidia now? 

Don't be like everybody else and think you can't go wrong buying Nasdaq 100 top tech stocks. They're the most overvalued in history.

The leaders in a bubble crash the most. So you don't buy them now. Nvidia is going to go down 96% or 98%.

But isn't artificial intelligence the hottest thing to invest in now?

AI is the screaming new baby. It's the future. Crypto is the future. Crypto is the digitization of all financial assets.

Over the next couple of decades, bitcoin will become the digital standard. That's when the global economy is mostly intangible goods, not tangible.

But what about gold, the standard? It's considered the safe haven.

Gold doesn't correlate with the new economy. In fact, it doesn't correlate at all. It grows only 1% a year. Gold isn't a digital safe haven like bitcoin could be.

So you're also saying that the crash you forecast will kick off a U.S. recession?

Yes. You'll see a lot of debts go bad. That will make the recession worse. It might be long lasting or else sharper and quicker. 

You need to clear the decks with a recession. You can't have a healthy boom without a healthy bust before that.

The government went crazy and printed $27 trillion in stimulus money, and then they keep pumping money into the economy. That shows that the economy is very weak underneath. Or why would it require all that stimulus to keep going?  

The government has been holding off this necessary recession for 14 years [by injecting stimulus money].

There are consequences to printing money out of thin air and running huge deficits. 

The real consequence is the largest, longest everything-bubble in modern history. There's only one thing that can happen: It has to burst.

When the dam finally bursts, we're going to have the biggest [collapse] of a bubble.

Of course, if [the economy] goes down again, they'll just print way more money. But there's a diminishing return in doing that. It will have less impact after you've stretched the economy so much more.

What are your thoughts about President Biden and former President Trump and the 2024 election?

I think God saved Biden [given his apparent cognitive and physical decline] from getting crucified. 

Biden is screwed any way you look at it. He should say, "I'll be the nice guy and get out of the way" — and then run and hide somewhere. If not, he's going to regret it.

I like him. I don't like Trump. He's the biggest a—— I've ever seen. He's a shrewd a——, smart enough to know better.

Whoever is elected [other than Biden] will walk into a crisis already happening; and so [they] won't be blamed for it. Then we'll get out of the crisis, and the party in charge will be a beneficiary of the turnaround, particularly the non-incumbent party.