This one is going to be different. It’s not a correction, it’s a crash.
Economic forecaster Harry Dent says “I see the Dow Jones Average winding down, week after week… falling through the 12,000 mark… below 10,000, then 9,000, 8,000… to 6,440 – where it’s likely to rally briefly… before ultimately dropping as low as 3,300. And there’s nothing you or I, or any politician or government, or any team of monetary experts can do to stop the Dow Jones Index from dropping.”
He told CNBC recently that he sees a stock market crash in the United States starting in the third quarter of 2013 and continuing for a year and a half.
He also said real estate prices and stocks would plummet more than 60% by the end of 2014, or sooner, meaning the Dow Jones Industrial Average would fall below 6,000. He also said the United States would be close to bankruptcy by then.
If you believe any of it, many investors are apparently making the mistake of thinking the downturn is over, and Dow stocks will continue to roar upward. The thing is, if you take out government spending, we’ve been in an depression since 2008… If it had it not been for the U.S. Federal Reserve’s moves to pump money, the stock market would already have collapsed.
To prepare, and to survive such a collapse, you will have to be smart and resourceful with the ability to adapt a life with less, a life of harder times. There will be grave dangers around heavily populated regions. People who lived through the 1930’s depression were largely hard working decent Americans who were down on their luck. Today, it will be quite a different story. A disaster.