NOTHING CAN STOP IT | 75-85% Housing & Stock Market Crash June | Harry Dent's Final Prediction

a 70 to 90 market crash is coming as early as june this is according to harry dent who predicted the 1989 market crash and the dot-com crash now i'm sure some of you have heard some of his predictions before this is his final warning and he's saying it's definitely going to happen there's nothing that can stop it and it's going to hurt more than anyone can imagine in this video i'm going to go over harry dent's latest housing and stock market prediction for australia and the u.s i'm going to go over what i agree with what i don't agree with and how likely i think it is to happen what you must know is we're in euphoria in the markets right now the markets are at all-time highs there's fomo in the stock market in the housing market everyone's feeling like they can get rich just by buying the next hot stock or buying a house and flipping in the year by huge huge risk amounting up and you must watch this video to the end to be aware of those risks so you can make a better educated decision okay let's get into it you know chris that's exactly how every top in the market has ever looked in 1929 in the u.s or 2000 in the tech bubble lasts in the u.s and around the world at the top of a boom things look good and when you have a pandemic and governments like the u.s print trillions of dollars to just get the economy back to not even and is not back to even by the way i have all the statistics on that in the u.s it's it's like oh everything's great and the markets are higher highs than ever the stock market chris is the most overvalued in all of history at the end of the greatest boom in history and it's gonna go down i'm sorry i hate to be realistic after being the most bullish person in all history in the early 90s in the recession there and worldwide in the us and australia that said we're going to see the dow ten thousand by two thousand people thought i was nuts now i'm saying it 33 000 on the dow we're going to go down what he's saying here and what i agree with is before every crash the stock market and the housing market actually rise the quickest and arises the most and what we are seeing here now in the stock market in the housing market is prices are going absolutely parabolic but this is not natural and the faster and the steeper the declines is the harder and the faster and the bigger the crash is going to be and like he says here people have the most confidence everything seems great when it's booming all the retail investors get in like in the great depression when the shoeshine boy was shining the stock investor's shoes and he started talking to him about stocks the investor said okay now the shoeshine boy is talking about socks it's time to get out and i'm sure you've all seen your friends and family they don't normally talk about stocks or the housing market or investing they're now talking about a lot and it's the next hot topic but this is the sign we're getting close to the peak and that a big crash is on the way and hey if those healthy gains like five to ten percent in the stock market every year and three to five percent in the housing market i wouldn't be saying we're in a bubble but we're seeing 50 to 70 percent gains in one year in the stock market and we're seeing 20 percent gains in a year in the housing market which is absolutely unsustainable if i want to feel good can i drink a cup of coffee that's that's what they're doing the economy the the economy is dead it's been dead since 2008 9. we've come out of the worst recession since the 1930s and we cannot get it back up no matter how much 12 years of stimulus chris printing money and now fiscal stimulus in the u.s and other countries are you kidding me if this economy is not dead i don't know what debt is if i was on the hospital show after this many defibrillators i would say the patient's dead so what are you saying here is the economy is dead and the only thing that's keeping on life support is all the amount of money printing by the central banks the quantitative easing and now the governments have had to step in because that's no longer working and interest rates are at zero and they've had to provide fiscal stimulus and everyone thinks the economy is great and the economy is booming well if it's so great and it's all booming then let the central bank stop printing money put interest rates back up to normal levels of 5 and tell the money to take away all these temporary programs and then we'll see how healthy the real economy is absolutely chris i'm telling you chris um i love australia you have the best demographics into the future of any developed country in the world us is sideways most of europe is down east asia japan's korea down forever you're you're the golden jewel but you have this real estate bubble which already was the second worst in the world only to china compared to income and now like you're saying prices are going up faster and this has happened in the us as well as well in the last stages of this bubble that's when you know you're in a bubble that's when it's euphoria that's when the bubble is getting ready to peak when people say i'll pay any price for a house in sydney or flat sydney that's when it's about to blow so what he says here is the australian housing market is the second most overvalued market in the world second to china and i may say even to canada where prices are going crazy as well and the biggest thing that shows us we're in a housing bubble is that people are willing to pay whatever price to get a property but this is going to end in tears and i'll tell you why right now people aren't paying market value for properties when they're going to auctions and putting offense down on properties they're paying 20 to 30 percent over market value because there's so much fomo in the market right now and they'll do whatever they can to secure that property but they're paying these prices when interest rates are at all time lows so what's going to happen when interest rates go up later this year and early next year when they go to value their property next year when all the fomo's been taken out of the market and people aren't making crazy offers on homes anymore well they pay 20 to 30 over market value before so now their property could be worth 20 to 30 percent less plus with higher interest rates people's borrowing capacity isn't going to be as great so they won't be able to go and make these crazy bids as people are doing now okay for the us i'm seeing 70 to 90 percent the stock market um 40 to 50 in real estate australia maybe 30 to 40 percent of real estate depending on the more overvalued or not markets this chris this is gonna be and i hate to say this i have not been saying this now i've been saying this since the early to mid 80s when i came up with my best demographic and technology forecasting tools we are going to see the biggest downturn in our lifetimes into late 2022 and now pushing this out maybe 2023 you have to see real estate and australia go down i'd say 30 maybe 40 less than the us and stocks look at the stock market going down 70 80 percent i'm telling you this is already baked in the cake this bubble has gone so far there's nothing you can do and so a crazy prediction he makes here and something i don't really agree with is he says the stock market could fall 70 to 90 percent and the housing market in the us could fall 50 to 60 percent while the housing market in australia could fall 30 to 40 percent so okay so let's tackle the stock market what i could see is a stock market correction is anywhere between 40 to 60 starting late this year depending on how high bond yields go because the stock market is at all-time high so some people are now starting to rotate in bonds and if bond yields get more attractive up to the two and a half three percent then we're going to see a lot of selling in the stock market and go into bonds plus in the stock market price to earnings have never been this high since guess what 2000 and 2007 and what happened during those times we had some of the biggest stock market crashes in history and he's saying we are going to see the biggest crash in our lifetimes because we've had the biggest bull run in our lifetime and always before the biggest run up there's the biggest crash plus what a big risk for the stock market is margin debt and like i've been saying and i've been saying this for months is margin debt is at all time highs and is causing huge risks to the stock market and the financial system and what happened just last week a family office in hedge fund defaulted on their margin loan and that sent shocks through wall street but what would happen if retail investors on math started defaulting on their margin because all it would take would be a 20 decline in the stock market for all of them to start getting margin calls and the prices to plummet immediately like what happened in march the reason why the crash was so quick was because so many people got margin calls on their margin debt and like what you've seen with wall street bets people are taking on huge amounts of margin debt they're doing 100 times leverage there's so much call and put options out there there's so much derivatives and really so derivatives and margin debt which i think is going to bring the stock market down plus not to mention there's most likely going to be higher corporate taxes in the us and that's going to hurt earnings and it's going to bring the stock market down a bit but i highly doubt it'll be 70 to 90 percent like he says now with the housing market he's saying 30 to 40 in australian 50 to 60 in the us this all depends on how high interest rates goes because like i say every 1 increase in interest rates house prices can fall 10 and right now interest rates are rising bond yields are rising and central banks are going to have to lift interest rates much sooner than they expected plus all these fixed interest rate loans that have been fixed for two to three years once they switch the variable rates and all these interest for only loans go to principal and interest there's going to be a lot of people that can't afford it and they're going to have to sell because they brought in at the peak they phone mode they over leverage because they thought they had to get it but really they couldn't afford it so the only way i could see 30 to 40 decline in property in australia would be if interest rates go up three to four percent and same in the us interest rate would have to go up three to four percent for us to see this big 50 to 60 percent market crash but there still are many risk for the housing market like withdrawing stimulus unemployment and another thing people aren't talking about with the housing market is rising property taxes and council rates while people think it may be awesome that the house price is booming well guess what your taxes are going to be booming and your council rates are going to be booming too and a lot of pensioners and boomers that brought houses they can't they're not going to be able to afford these council rates so they may be forced to downsize and sell their home and like i said earlier i think a big risk is people are actually overpaying 20 to 30 percent now in the euphoric phase of the market so when the markets does get more realistic and next year when interest rates rise if they get an appraiser because appraisers are normally conservative to re-value their property it could be 20 less just due to the fact that they overpaid for the house so now he gives his timeline and how sure he is i am 90 sure it will happen by the end of this year i am 80 sure it will happen by june this peak in the stock market and then real estate follows now here's the difference chris stocks you can get out easy okay if stocks go down and crash and then bounce up and get out real estate is much harder to get out of so i'm telling people you've got to start getting out of any real estate that you do not want to be in long term especially in australia where it's the second most overvalued market and the entire world chris get out of real estate now because it takes longer to do that and he's saying he's 90 sure it's going to happen by the end of the year and while i do think there is going to be a slowdown towards the end of the year i highly doubt it will be 70 to 90 percent i think will be more likely 20 to 30 percent in the stock market and he's also saying it could start as early as june and what is happening in june well there's all the government stimulus programs the central banks are going to start quantitative tightening and so all this money is going to be taken out of the economy and banks are going to start having to hold more capital and more reserves so we could see a tightening and credit and that could definitely lead to a decline starting june and like he says here is the stock market that will sell off very quickly the housing market does not like the stock market can't just crash overnight and some people see my videos about how i think a big decline in the house market could happen and they're like oh michael it's been two hours the housing market hasn't crashed yet i guess you were wrong but like he says here it's a very long process for the real estate market because it can take up to three months to sell your home starting from the time you decide to sell your home you have to then find a real estate agent put it on the market do an advertising campaign then you have to do settlement so it's going to take at least six months before the housing decline starts happening and then it could take another two months before we start getting that data you have to protect whatever you have to realize this has never happened in history past the 1920s roaring 20s bubble this is the biggest global bubble and more global sense you have to look at all your financial assets right now and say i want to sell them or preserve them because they're all going to go down real estate stocks everything but the most conservative government australian and u.s treasury bonds are going to go down to reality and it's going to hurt more than anybody thinks it ever could and nobody thinks it could happen and i'm the only guy on earth saying it but i'm the only guy on earth that told people that 1989 that japan was going to go down for ever so he's saying here it's definitely going to happen there's nothing they can do about it and he's saying nobody thinks it can happen now but he is right before every big market crash especially when there's such steep price gains people think oh stock market just goes up forever i just put my money in and then it doubles the next month i just buy a house flip it for the next year nobody thinks a crash is going to happen but boom it can happen overnight just like what happened with the pandemic and just like what happened in the subprime crisis nobody saw it coming but bulma came and people were unprepared and unfortunately people getting very very complacent they're taking on huge amounts of risk they're taking on huge amounts of debt and it's going to end very badly all the developed countries are keeping the bubble going only china because they have more top down control is starting to quell their bubble a bit but even that once you get bubbles of this extent chris there's no way to stop it right they have to come down to reality and it's and it's i'm telling you it's 30 to 50 for real estate in most countries and it's 60 to 90 percent and stocks in most countries this is going to kill most people's retirement portfolios and there's nothing they can do about it i'm telling people just get out of the way get safe safe investment highest quality government bonds and cash and just sit through this i'm telling you it's coming in the next two to three years and i think it's i think it's about to start in the next month or two so he was asked here well okay if there is a big crash coming is there anything the government and central bank can do and he pretty much says here there's nothing they can do they've really cornered themselves and something i do agree here on what the central banks have done is they're printed so much money they've dropped interest rates so low and people have taken on so much debt there's so much leverage in the financial system and they've bailed out all these banks has bailed out all these financial institutions and now pretty much everything is too big to fail the airlines are too big to fail the banks are too big to fail the construction industry is too big to fail the mining industry is too big to fail everything's too big to fail because there's so much leverage and so much risk in this financial system and really this financial system is on verge of collapse but what they're doing is they're keeping confidence high by printing all this money by keeping interest rates low and as long as people have confidence in the financial system there won't be a crash but as soon as that confidence is lost in the financial system that's when we will see the big crash so my final thoughts are i don't really agree it's going to be that big 70 to 90 percent in the stock market and 40 to 60 percent in the housing market i think a more realistic thing would be 40 to 60 percent crash in the stock market and a 20 to 30 percent crash in a housing market but this all depends on how far the government and central banks are willing to go they could do something called helicopter money if they're really desperate they could drop interest rates to negative they could go negative five to ten percent the central banks could create a digital currency and give everyone ten thousand to a hundred thousand dollars they could start giving houses away or buying you a house who knows how far this bubble will go but really what i think is we're getting to the end of the road central banks are running out of tools they keep saying we've got tools we've got tools we've got power tools we've got big tools we've got all the tools you can think of but really they got no tools they've dropped interest rates to xero they've printed the currency into the ground there's nothing really they can do now the only last thing they could do is ubi and helicopter money but that is what all governments and currencies do before the collapse so guys what do you think about these predictions do you think the crash is really going to start as early as june or do you think like i think it's going to start maybe later this year to early next year and how much of a crash do you think it's going to be for my loyal viewers and subscribers still watching you're awesome if you haven't already please tap that like and subscribe button i'll keep you all updated on latest housing and finance and economic news and if you're bored here's some of my other videos here i'll see you there

Channel: Michael Cowan

Views: 386,618

Keywords: Housing & stock market crash, housing market crash, stock market crash, australia housing market, ASX, housing market, stock market, investing, finance news, stock market 2021, stock market crash 2021, market crash 2021, economy 2021, stock market crash 2021 predictions, harry dent, federal reserve, stock market 2021 forecast

Id: i-fcEA7_fcI

Length: 18min 2sec (1082 seconds)

Published: Fri Apr 02 2021