If the stock market hits a new low, I dont expect the Dow, the S & P, the Nasdaq, biotech stocks to hit new highs. You wont see anything reaching new heights for decades. Its like we havent seen a new high in the 24 years since 1929, dent said in a recent media interview
Dent pointed out that the economic recovery has come to an end, and the stock market will soon realize that.
A considerable part of it is difficult to recover, I think 80 per cent of the economy has not been permanently damaged and a V-shaped recovery has been achieved, but 15-20 per cent of the economy will not recover, he said
Dent believes consumer spending will remain weak as the baby boomers enter retirement age.
We will move forward from 2023. But not until then, so the demographics are still weak and the debt is still heavy. I want to say that we will never fully recover from this crisis, and we will realize that by the beginning of next year.
Dent added that the next stock market crash will not rebound as simply as the sell-off in March this year. Dent pointed out that the fuse of the new round of collapse is more business bankruptcies.
The novel coronavirus pneumonia occurred earlier this year. I think it will be nine to 12 months before you really feel the impact of small businesses and zombie companies. They dont disappear overnight. The stock market may fall overnight as in the past, but bankruptcy will take time. According to dent.
I think by the first quarter of next year, youre going to see more companies go bankrupt, which will be the fuse, he stressed
As early as 2017, dent warned that the financial market would usher in the worst time in the next three years, and the US stock market might even fall by 70% - 90%.
He said at the time that the four long-term trends he tracked had peaked in the past few years and were now in a downward range, and this trend could continue until around 2020.