Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

What Could Happen When the Stock Markets Correct Next

Stock-Markets / Stock Markets 2019 Feb 16, 2019 - 03:48 PM GMT

By: Harry_Dent

Stock-Markets I hate to be so cynical, but the markets love to fool as many people as possible, bulls and bears alike. This is especially true at key turning points and even more so in extreme bubbles like the one we’ve been in since late 1994, with this final phase – and it’s unprecedented QE and tax cuts – since early 2009.

This final rally (since 2009) is all “hot air.”

This recovery has been the weakest ever in real GDP, capital spending, employment growth, and productivity (I’ll talk about this in more detail in the upcoming February edition of The Leading Edge).


The Fed has created what I call “markets on crack” by printing free money and pushing short- and long-term rates down artificially.

Earnings per share have grown 119% faster than corporate profits due to companies’ ability to buy back their own stocks with cheap money from the Fed. Such free money policies always create or amplify bubbles that only burst dramatically!

Be warned…

There are NO soft landings to such extreme bubbles. (I challenge you to find just one in history.)

After the January 2018 peak, that looked like a potential final bubble top, we didn’t get that classic 40% sharp crash in the first two to three months. We haven’t seen that since the slightly higher high on October 3, but that didn’t look like a classic bubble top.

So, what’s the most likely scenario now?

A final blow-off rally… what I call a Dark Window.

But – and this is me being cynical here – first we’ll see a scary crash.

That’s exactly what occurred in the last great bubble peak into March 2000. The Nasdaq crashed 34% sharply into late 1998, then turned around and made the greatest final blow-off rally in history into March 2000.

I love it because it fakes out the bulls first, and then kills the bears, just before the crash of a lifetime, like 1929 to 1932, into 2020 to 2022.

Here’s the chart for that ultimate scenario that would still be in play even if the Nasdaq crashed down to as low as 5,500 in the coming weeks, down 32% from its all-time high ahead of most markets in late August… just like the late 1998 scenario.



This isn’t carved into stone yet, but is still the most likely scenario so take it seriously because the greatest short-term profits would precede the greatest long-term crash and create the most profitable trades of a lifetime.

I will be watching this correction very seriously and will keep you updated! In the meantime, tomorrow Rodney will share with you an investment to add to your portfolio in preparation of this Dark Window. And on Friday I’ll share some examples of how powerful the opportunities ahead can be.

Stay tuned.

Harry

http://economyandmarkets.com

Follow me on Twitter @HarryDentjr

P.S. Another way to stay ahead is by reading the 27 simple stock secrets that our Seven-Figure Trader says are worth $588,221. You’ll find the details here.

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.

Copyright © 2019 Harry Dent- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Harry Dent Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in