The post-election market rally fueled by Trump’s victory has investors cheering for now. But outspoken economist Harry Dent remains negative about America’s private debt and the future of its economy, arguing that the euphoria won’t last long.

“I can tell you one thing: Bubbles never, ever end well. There’s no way to come out of an extreme bubble and have a soft landing. Now, it looks like it’s happening right now, and we’ll see. But I’m telling people to give it until 2025,” Dent said. to Fox News Digital a week after his day.

“I think it will be announced next year whether they can bring this bubble down without causing a collapse, because I can tell you, it’s never happened in history. And I can’t even compare bubbles in the past to this one, considering how global and widespread it is.”

Former President Trump’s victory over Vice President Kamala Harris in the 2024 presidential election caused US stocks to soar to record levels. best week for the market of the whole year.

AFTER MUSK-SUPPORTED TRUMP WON THE PRESIDENT, TESLA’S MARKET VALUE EXCEEDED 1 TRILLION DOLLARS

But Dent doesn’t move from June forecast The “everything” bubble could burst in mid-2025. Moreover, he now argues that Trump’s fiscal policies will not be enough to prevent a cyclical crash tied to private debt rather than federal debt.

Economist Harry Dent insists on predicting that the market crash will hit the US economy in mid-2025. (iStock)

“Obviously he’s seen as pro-business, and yes, tax cuts; everyone likes tax cuts. But we already have the largest deficit in 16 years. We haven’t seen a balanced budget or anything like that since 2001. It’s just crazy.” said Dent.

“And I think that’s the big risk here; Trump may seem like a good thing to do to maybe stimulate the economy,” he continued, “but if he cuts government spending, I would say that would start a slowdown that would strengthen the economy on its own.”

The economist highlighted the possibility of “a very bad downturn when it is finally allowed to happen”, while adding that politicians cannot prolong the inevitable.

“COVID was the biggest thing, and I think that’s where central banks and governments made a mistake,” he said. “They overreacted to COVID… This would have been a good time to let the economy rest and blow off some steam. But no, they doubled down and gave more stimulus than ever before. And then all of a sudden they got 9.1% inflation.” “

cave-in predictions o private sector debt Financial assets in the United States reach $630 trillion and are growing five times faster than global gross domestic product. The “trillion dollar question” is not a question of whether a market crash will occur, but rather, Whenbelieves.

“I know the best remedy for the economy. It’s called recession, sometimes even depression,” Dent said. “This will eliminate most of the bad debts (and) will fail. That’s what happens in a recession. It’s healthy to borrow in growth and for companies to invest in equity. But recessions come with them, or sometimes a depression after a bubble burst. And that’s a bubble burst.”“

“So people have lost track, especially central banks, which, as I always say, are run by economists who look like they’ve never run a business… Failure is the secret of capitalism. It’s not just the opportunity to innovate. It’s also to (quickly) allow failures to happen and drive them out of the economy.” .And we haven’t done that in 16 years.”

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Market overvaluation ultimately harms “the No. 1 economic indicator that almost no one looks at”: money velocity, defined as the speed at which domestic consumers and businesses exchange money in an economy.

“The velocity of money has been falling like a rock since 1997, right in the middle of the first bubble. This just shows that bubbles are not healthy,” Dent said.

The generation that will suffer the most from next year’s market crash Baby Boomers?Many are entering retirement and relying on their portfolios.

“If all these financial assets that they’re holding for retirement lose value and they’re making less income because they quit their jobs or they’re just getting a small pension or whatever, they’re going to be in big trouble… But I’m telling you, if I’m right about this crash and Treasury bonds are safe “If it goes up as a port, then they will be good for nothing but going down for the rest of our lives, because low inflation is not a good thing, it’s a good environment for them,” the economist explained.

“So I think the next few years are probably going to be ugly. The question is, when is this going to start?” Dent suggested. “I think central banks know this better than anyone else. They can’t say this because they don’t want to scare anyone.”

If anything is going to get markets off to a strong start in 2025, it’s this is bitcoin. Dent told Fox Digital that he has been purchasing more cryptocurrencies since his last interview in June.

“But in the short term, if we had the kind of crash that I’m talking about, I would have a hard time buying anything else aggressively because Bitcoin could bounce back to the 15,000, 16,000 levels, the last major low.”

“I make my long-term predictions by comparing Bitcoin to other groundbreaking new technologies, like the dot-com revolution of the late ’90s, that bubble, and what came after. Bubbles are financing the new revolution. So those are a good thing,” Dent added. . “I see Bitcoin going to 800,000 to 1 million by 2037 by 40. So I still have a long way to go. So boy, if that drops to 15,000 or even 20 or 25, that’s the buy. That’s It would be difficult for me to buy anything else at these prices.”

Currently, traders in the market are “joining” the post-election bubble, although Dent compares this to the situation on the Titanic.

“When everyone gets on the boat, that’s when the Titanic sinks. So I guess everyone is on the boat now,” he said.

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“Look at the reality, look at the graphs and see how much again, I’m just talking about housing going back to 2012. That would mean (a) 62% collapse in housing, which would be twice as bad as the 2008 crisis. And that’s what most people think It was bad for you,” Dent said.

“Stocks, going back to 2009, that’s 89% on the S&P 500 and 94% on the Nasdaq. That’s complete extinction. That’s from 1929 to ’32. You have to at least acknowledge that it’s a possibility here.”

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