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Daily Traders Edge

How to Predict a Market Crash

July 26
10:40 2021

Harry Dent is at it again, predicting the worst year for the stock market in our lifetime in an interview with ThinkAdvisor.

Sure, why not.

The great thing about the Internet is we have the ability to look at the track record of the person making outlandish claims to see if it makes sense to give credence to their predictions.

Dent made a nice call in the mid-1990s for a coming boom that came true.

It’s been all downhill from there with a series of boom and bust calls that have been on the wrong side of history.

The most depressing part of these books is not how wrong they all were but how many 4 and 5 star reviews they have from readers.

I’m not actually sure if Dent believes each one of his predictions but his latest interview provides some clues as to how the most preeminent market soothsayers are able to make market crash predictions over and over again.

Here’s how to predict a market crash without ever admitting you were wrong if it doesn’t come true:

Give a specific date for the crash. Dent says the stock market will see 80% of its value wiped off the map by this fall:

It takes just “one extra snowflake to start an avalanche — and boom!” Indeed, according to Harry S. Dent Jr., aka The Contrarian’s Contrarian, flurries could come in July: The ever-building market bubble is likely to “blow at the end of this month, if not September,” predicts Dent in an interview with ThinkAdvisor.

Stocks have no place in investors’ portfolios, he argues, forecasting that most equities will plummet 80% by autumn.

Giving a specific date and a specific level of the crash are key here because it makes it seem like you can predict the future. This is an irresistible combination for those searching for answers about what comes next.

Continue Reading at A Wealth of Common Sense

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