Several Quebec economists are optimistic that the year 2024 will see inflation recover somewhat and interest rates stabilize; However, to the extent that the Quebec – and Canadian – economy is strongly indexed to that of the United States, the forecasts of American economists can serve as an indicator, and one of them paints a particularly worrying picture of the next year. .
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The economist Harry Dent predicts, going against the grain of many of his colleagues, that the year 2024 will be particularly difficult for the economy.
“Since 2009, money printing and deficits have been 100% artificial and unprecedented; $27 trillion over 15 years, to be exact. This is unprecedented, 100% artificial, which means we are in a dangerous situation,” he told Fox News Digital.
“I think 2024 will be the greatest year of crisis we will experience in our lifetime,” he added, bluntly.
Mr. Dent justified his prediction by arguing that markets are overvalued and stimulus spending excessive.
“I’m the one praying for a crash when everyone else isn’t. We need to get back to normal and send a message to central banks,” he continued.
While recent increases have allowed investors to anticipate a slight recession, Mr. Dent remains convinced that an “everything bubble” will burst next year.
Historically, stock market bubbles are characterized by a rapid rise in stock prices, followed by a sharp fall.
The economist notes that this bubble actually began in late 2021, after the height of the COVID pandemic, and that the first signs showed in 2022, when the Nasdaq fell 38%.
“Don’t listen to your advisor”
According to the analyst, the new year will bring the “B wave” of the crash.
“This is the only time I tell you not to listen to your financial advisor. Things are not going to return to normal in a few years. We may never see these levels again. And this crash will not be a correction. It will more resemble the crash of 29 and 32.”
“This is an 86% collapse in the S&P and 92% in the NASDAQ. And for cryptocurrencies, it will be 96%. So it’s a big deal,” explained the economist.
“Real estate, moreover, should, according to my projections, only return to its lowest level of 2012… but that is a collapse of 50% for the average house, which fell by 34% during of the last crash, more than during the Great Depression, more than at any time in history. This is what will hurt people the most,” he concluded.
According to Mr. Dent, the crash will become “obvious in May” and will be the biggest in our lifetime.
