The year 2024 is rapidly approaching, and an outspoken economist, Harry Dent, is making a dire prediction about the state of the markets. Dent argues that the current economic landscape is unsustainable, fueled by artificial money printing and excessive deficits. He warns that the bubble created by these practices will inevitably burst, leading to the “biggest single crash year we’ll see in our lifetimes.”

According to Dent, the current economic situation is the result of unprecedented money printing and deficits, totaling a staggering $27 trillion over 15 years. He argues that this artificial growth has created a dangerous state, with overvalued markets and excessive stimulus spending at the forefront. While recent rallies have provided investors with mild recession expectations, Dent remains firm that an “everything bubble” will burst in 2024.

Dent points out that the bubble actually started forming in late 2021, following the height of the pandemic. Signs of this impending crash became apparent in 2022 when the Nasdaq experienced a significant decline of 38%. Dent predicts that 2024 will bring the “B wave” of this crash, leading to a market correction that surpasses anything seen in recent history.

Drawing parallels to the Great Depression, Dent predicts a substantial crash with devastating consequences. He forecasts an 86% crash in the S&P, a 92% crash in the NASDAQ, and an astonishing 96% decline in the cryptocurrency market. Additionally, Dent anticipates a 50% crash in real estate, surpassing the 34% decline witnessed during the last financial crisis. These projections paint a bleak picture of the potential losses investors may face.

Dent strongly advises investors to exercise caution, particularly in light of the year-end market rally. He criticizes those who fail to recognize the impending crash, urging them to “get out of the way.” Dent believes that by exiting the market for six to twelve months, investors can avoid massive losses and position themselves to reinvest at significantly lower prices in the future. He emphasizes the importance of seizing the opportunity to protect one’s wealth and potentially magnify gains.

Dent attributes the severity of the impending crash to the actions of the Federal Reserve. He argues that their excessive stimulation during the pandemic has led to the need for significant tightening measures, which will have a profound impact in 2024. Dent predicts that when the tightening is reversed, it will plunge the economy into a depression rather than a mild recession. He foresees deflation and a significant downturn in consumer price inflation, especially in the housing market.

Dent warns that the consequences of the impending crash will be long-lasting, with a slowdown impact lasting 12 to 14 years. He predicts a widening wealth gap, with the rich suffering substantial losses while the average person experiences job losses and economic hardship. However, Dent also suggests that the following stage of the economic cycle, the millennial boom, will allow the middle class to catch up and mitigate some of the wealth disparities. It’s an unpredictable time that we’re living in right now. I guess we’ll just have to see how it all plays out.