Stock markets across the world, including India, are witnessing record-breaking growth. Amidst this happy atmosphere, famous American economist Harry Dent has warned that the stock market will witness a historic decline in the near future. In an interview with Fox News, the 71-year-old economist warned that the stock market is the calm before the storm. Dent emphasized that when the stock market bubble bursts, the market will experience a drop even greater than the Great Recession of 2008. Let us tell you that Dent is a famous economist who writes or speaks vociferously about his views on the American economy.
Nasdaq down 92%
Dent said that this bubble is completely artificial. Most bubbles go unrecognized for about 5-6 years. This market bubble has been running for 14 years. So you have to expect a bigger market decline than the 2008 to 2009 recession. Dent emphasized that the situation would not remain the same for long. I think we will see the US market indices top the S&P by 86% and the Nasdaq by 92%.
2008 Recession
Let us tell you that in the recession of 2008, stock markets around the world, including India, crashed. This downturn in the market occurred when the American financial firm ‘Lemon Brothers’ announced bankruptcy. After this, restlessness was seen in all the economies around the world. Investors from all over the world, including India, had to bear the brunt of this. Not only did investors lose money but there were layoffs globally.
Indian market always high
Indian stock market is making new records every day. On Wednesday, the Sensex closed up 149.98 points or 0.20 percent at 76,606.57 points. At one point during trading, it was up 593.94 points, or 0.77 percent, at 77,050.53 points, just 28.51 points away from its all-time high of 77,079.04. The benchmark Nifty of the National Stock Exchange (NSE) also gained 177.1 points or 0.76 per cent to touch a fresh high of 23,441.95 during the day’s trading. It closed up 58.10 points or 0.25 percent at a new high of 23,322.95 at the end of trading.