Tags: Dent | Dow | 17000 | 6000

Author Dent: Dow Will Climb to 17,000, Then Crash to 6,000

By Dan Weil   |   Tuesday, 04 Mar 2014 01:38 PM

The Dow Jones Industrial Average will probably reach 17,000 within the next few weeks and then enter a horrific downturn that will take it to 6,000 by 2016, says financial author Harry Dent.

A move to 17,000 would represent a 3.6 percent increase from Tuesday's close of 16,396, and then a move to 6,000 would represent a 63 percent plunge.

"I think we see another correction, crash, that is larger than the last one," Dent tells CNBC. "Every bubble — and these are bubbles — has taken us to new highs, and every crash has taken us to new lows. . . . I think this will be the most dangerous period in people's lives in investing."

Editor’s Note:
38 Trades That Could Turn $1,000 Into $49,000

It's a demographic issue that will take the market down, says Dent, author of "The Demographic Cliff: How to Survive and Prosper During the Great Deflation of 2014-2019."

Aging workers will soon retire in force and drain the government's resources through entitlements, he explains. Meanwhile, younger workers won't spend enough to replace the stimulus provided by their retiring brethren.

"Generations spend and then they don't," Dent maintains. "Governments are fighting that with massive stimulus, and it shows why the economy is so weak with so much stimulus. Demographics is the only way you can explain that."

Not everyone is so bearish. Some experts say the negative impact of Ukraine's turmoil on stocks may end soon.

"On the geopolitical front, you have Ukraine in the limelight," Gunther Westen, head of asset allocation at Meriten Investment Management in Dusseldorf, Germany, tells Bloomberg.

"This is certainly a threat, but market concerns tend to fade as long as the situation doesn't get worse or as long as the economies are not heavily influenced."

Editor’s Note: 38 Trades That Could Turn $1,000 Into $49,000

Related Stories:

© 2017 Newsmax Finance. All rights reserved.

1Like our page
2Share
InvestingAnalysis
The Dow Jones Industrial Average will probably reach 17,000 within the next few weeks and then enter a horrific downturn that will take it to 6,000 by 2016, says financial author Harry Dent.
Dent,Dow,17000,6000
328
2014-38-04
 
 
 
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved