Bearish Markets for next 24 months.This idea is based on a recent Kitco News Interview with Harry Dent. If are not familiar with Harry, he is an Contrarian Investor and Author. I have respected Harry's opinion, and more times than not, he is on the money. Pun intended.
From this interview I put together a chart of the S&P 500 with an attempt to convey his forecasts.
He is forecasting an everything bubble burst, and it going to get ugly over the next 24 months. Even Gold wont be a safe haven.
Forecasting Bitcoin to hit a low of $3000. He suggest long term treasury bonds might be the only place to be when it gets ugly.
Buckle up kids, the long term BULL market has officially ended. Its Bear season now!
I put up my trusty fib overlay. If SP500 breaks that the typically strong 61.8 fib resistance, it will likely keeping falling to a full 100 or 110% retracement, based on my interpretation of Harrys Comments. We should begin to see a once in a generation buy zone in late 2024 or early 2025. Until then, go cash, BOND, or short the market. Harry Suggested Credit Investments, which I assume he means banking, credit card and credit industry stocks, and Bonds. He did specifically name 35 year Treasury bonds as an example.
The US economy has been artificially pumped up using the magic of printing currency, trillions of dollars in fact. Which means the dollar has been watered down significantly. History has shown many time over, that this strategy will always eventually fail, 100% of the time! It always ends badly with high inflation, supply issues, countries begin to become very polarized in political opinions, and no one is willing to meet in the middle. The US economy has not been that great, but using smoke and mirrors, and a running the printing presses non-stop, has made it seem otherwise. Eventually it all works it self back to the median. Time to let go of your bullish sentiment and rethink were all the markets and economies are now heading. Time to get ahead of this.
