I am not quite finished this one yet, but I thought I would give a short synopsis of what I have read so far. I need a break from the "Doom and Gloom", so I am going to read another book or two and then come back to finish it.
Harry Dent is famous for his past book predictions and has been pretty accurate. He has written The Great Depression Ahead, which foretold the 2008 crash and Housing Bubble in the USA and The Roaring 2000's, which spoke of the big Bull Run of the 2000's.
If he is again correct, we better hold on tight, as we are about to go for a very rough ride. He is predicting that the Dow Jones will go down to approximately 3300. It was at 12,922 yesterday ... so that is a huge plunge. This will not be overnight, but rather a downward cycle over a period of 1-2 years. Not only will it go down, but it will stay down for a number of years (into the 2020's). We will see some tough times with more job losses, deflation and another downturn in the housing sector.
He says there will be a return to the US Dollar, and it will again rise in value. Also, he says to tighten our belts, trim our expenses, and pay off our debts. Good advice at any time, the old saying "Live within your means".
He is also suggesting that people should sell their stocks, gold, real estate and go to cash. Huge Government Debt, Private Debt and the Baby Boomers wave of retirement will bring about hard times for the foreseeable future.
This is where I have gotten to ... now you can understand why I need a break!! I am hoping he will go on to tell us how to prepare and make $$ in this downturn.
Stay tuned and I will report on this in the near future.
I am curious what people have to say about his predictions. Have you read his other books, what do you think?
Hey Nic - I haven't read this, but I'm thinking I want to! Encouragement to get out of debt is always good, but I'm pretty sure that we would never sell the house and go purely to cash! I'll just follow your lead - you always seem to be ahead of the money trends ;-)
ReplyDeleteI wouldn't be selling the house, I think he means investment real estate ... or getting a bigger house and more debt. I think one of the main messages is to be more cautious about taking on more debt and how much debt everyone has acquired in the past decade.
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