Financial Author Harry Dent: Dow Will Plunge to 5,500-6,000

Thursday, 21 Aug 2014 11:55 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
There's no shortage of market participants who are bearish on stocks. But very few are as bearish as financial author Harry Dent.

He predicts the Dow Jones Industrial Average will plunge to about 5,500 to 6,000 in late 2016 or early 2017.

"Every bubble has taken [the market] to new highs—the 2000 tech top and the 2007 top," Dent told Yahoo. "Now we’re gonna top ... at just over 17,000 on the Dow." The index stood at 17,050.28 at midday Thursday.

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

His predictions are based on demographics. He's particularly interested in 48 year-olds, as that's often the age of maximum spending.

When the number of 48 year-olds slides, so does the stock market, Dent said. And aging baby boomers are depleting that age slot. He also maintains that Federal Reserve stimulus has fuelled a stock market bubble.

"Every crash has taken us to new lows," Dent said. "So the last crash took us down to 6,442 on the Dow," and the next one should be lower, he said.

Meanwhile, stocks' dependence on the Fed's easing is dangerous, says Mohamed El-Erian, chief economic adviser to Allianz.

"The bet on central banks assumes not just their commitment, which I totally agree with," he told CNBC. "But . . . it assumes their effectiveness, that somehow central banks acting on their own will be able to deliver great economic outcomes."

And that's been a problem, El-Erian said. The U.S. economy has grown at an annual rate of only 2.2 percent since the recession ended five years ago.

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

Related Stories:









© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

John Kasich 2016: 7 Key Political Positions of GOP Presidential Hopeful

Friday, 19 Dec 2014 22:22 PM

John Kasich has been involved in the national scene since the 1980s as a U.S. congressman and popular governor from Ohio . . .

Stocks Rise in Best Week Since October as Energy Industry Gains

Friday, 19 Dec 2014 16:56 PM

Oil and gas companies led the stock market up Friday, helping the Standard Poor's 500 index notch its second-best week . . .

Fed's Williams Sees June as Time to Start Considering Higher Rates

Friday, 19 Dec 2014 15:10 PM

Federal Reserve Bank of San Francisco President John Williams said next June will be the right time to consider when to  . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved