Year to date, the S&P 500 is up 25%, the Dow Jones is up 13%, and the technology-heavy Nasdaq is up 44%.
American economist Harris Dent recently predicted that this bull market is "the result of 100% artificial money printing" and that this huge bubble will burst in 2024, when the collapse of the US stock market will be worse than the Great Depression of 1929. bitter. Harris also called on readers, "Please trust my judgment. If I am wrong, you will lose up to 6 to 12 months of investment time. And if I am right, you will escape the most tragic event in your life." After the crash, after 2025, you can buy a large number of assets at ultra-low prices and earn the biggest profit in your life."
Harris predicts that the bursting of the U.S. economic bubble will reach its climax in May 2024, when the S&P Index will plummet 86%, the Nasdaq Index will plummet 92%, and the value of cryptocurrency will be almost wiped out and plummet. 96%. For U.S. homeowners, Harris believes the average U.S. home price will fall by more than 50%. What do you think about this? What information is worth paying attention to?
1. The background of Harris’s prediction: Global central banks are gradually withdrawing their monetary stimulus policies. However, the market may still face other challenges, such as geopolitical events, changes in the economic cycle, etc.
2. The basis for Harris’ prediction: He pointed out that the current bull market is mainly driven by monetary easing policies rather than economic fundamentals. In this case, investors need to pay attention to economic fundamentals and policy trends to evaluate market trends.
3. The likelihood of Harris’ prediction: While Harris’s prediction may attract investors’ attention, investors should note that predicting stock market trends is an extremely challenging task. Many economists and analysts have predicted market crashes in the past, but actual results have often been inconsistent with predictions. Therefore, investors should remain cautious and not place too much reliance on forecasts.
4. Market reaction and investor behavior: If investors begin to worry about market bubbles, they may adopt defensive investment strategies, such as reducing stock investment and increasing the proportion of bonds and cash. This behavior could have an impact on the market, causing a correction in the stock market.
5. How investors should respond: Investors should view Harris's predictions rationally, pay attention to market dynamics, adjust investment strategies, and manage risks. Specifically:
a. Pay attention to economic fundamentals: Pay attention to U.S. and global economic data, such as GDP, employment, inflation, etc., to evaluate whether economic fundamentals support the rise of the stock market.
b. Pay attention to policy trends: Pay attention to the monetary policy trends of the Federal Reserve and other central banks, as well as changes in fiscal policies, to evaluate the impact of policies on the market.
c. Pay attention to geopolitical events: Pay attention to international political situations, trade frictions and other events to assess their impact on market risk appetite.
d. Adjust investment strategies: Adjust the proportion of stocks, bonds, cash and other assets based on market conditions and personal risk tolerance.
e. Do a good job in risk management: diversify investments and avoid excessive concentration in a certain industry or region to reduce overall investment risks.
Investors should view Harris' predictions rationally, pay attention to market dynamics, adjust investment strategies, and manage risks well.