The Dow Jones Industrial Average is up more than 5,000 points since late October. The red-hot stock market overall is skyrocketing to highs not seen in two years.

The upward trend has baffled federal banking officials who have tried to slow down the economy with higher interest rates as inflation rises. One expert believes that the surging economy is fueled by a flood of government money, and it has created a dangerous, unstable bubble.

The outspoken U.S. economist warned people of an historic market failure that he believes will happen next year. While most people are readying to ring in a celebration of the New Year, he hopes that the economic bubble bursts.

From Fox Business:
“I’m the guy that’s praying for a crash while everybody else is not,” Harry Dent told Fox News Digital. “We need to get back down to normal, and we need to send a message to central banks. I think 2024 is going to be the biggest single crash year we’ll see in our lifetimes.”

Dent, who spent most of his career analyzing proprietary research, believes overvalued markets and excessive stimulus spending support his contrarian prediction.

“Since 2009, this has been 100% artificial, unprecedented money printing and deficits; $27 trillion over 15 years, to be exact,” Dent said. “This is off the charts, 100% artificial, which means we’re in a dangerous state.”

Stock market bubbles historically are revealed by a rapid rise in stock prices followed by a fast, sharp fall. Analysts and economists in general believe that recent market rallies have created expectations of a mild recession. Dent is holding strong to his prediction that an “everything bubble” will burst in 2024.

The severe drop, Dent noted, will be the “B wave” of a crash that started in late 2021 with the first signs showing in 2022 when the Nasdaq was down 38%. Dent believes the downfall ahead will be more than any time in history, including the 1929 stock market crash.

The “everything bubble” surrounds major aspects of the economy such as real estate and the stock market. He estimates the fall could be as much as 86% in the S&P 500, 92% in the Nasdaq, 96% in cryptocurrency, and 50% in housing. The crash, he believes, will last for years.

“Things are not going to come back to normal in a few years,” Dent said. “We may never see these levels again. And this crash is not going to be a correction.”

Dent encouraged Americans to “get out of the way” as this bubble breaks apart. He expects the downward move to start early in the year and be more obvious by May.

“If I’m right, it is going to be the biggest crash of our lifetime, most of it happening in 2024,” Dent said. “All this talk about, ‘Oh, yeah, now we’re going to have a mild recession’ – not a chance in Hades.”

Dent believes the “everything bubble” will impact an economic slowdown for 12 to 14 years. This will be a time of the rich getting richer and the poor getting poorer.

Key Takeaways:

• A U.S. economist prays that 2024 rings in an “everything bubble” market crash.
• Harry Dent predicted that the rapid, sharp market downfall will be worse than 1929.
• His prediction noted that the economic fallout could last more than a decade.

Source: Fox Business