If a stopped clock is right twice a day, it may be time to heed the alarm of perpetual stock-market bear Harry Dent.
For decades, Dent has been warning about the “biggest crash of our lifetime.”
That time may be now.
To explain Dent in tsunami-speak, the tide has now completely rolled out, leaving behind schools of shiny flopping fish. The next wave to roll in is the one to destroy the beach.
Based on historical analysis, Dent believes the stock-market tsunami will arrive in three waves, wiping us out in five smooth phases.
The first phase started when the stock markets topped early this year, when the Dow Jones flirted with 37000. That first wave down hit bottom in June, equities dropping 20%.
We are now in phase two, the first relief rally, which Dent predicts will last 1-2 months — meaning the next wave down, phase three, should arrive in the next few weeks, perhaps as late as shortly after Labor Day.
Phase three may start when the Dow taps 34000. From there, it would likely fall like a forty-foot wall of water, crashing past the June lows, washing past 29500.
According to Dent, this second wave down — which could last five-and-a-half months — should be equally steep as the first wave down.
Another 20% drop from 29500 dilutes the Dow to 23600, back to its May 2020 support.
That puts us in February 2023, soon after a new Congress has convened, when new economic policies are most likely introduced.
If we’re lucky, the market will bottom in February and, like a limping bull, begin its slow climb back over the next decade.
But Harry Dent says no such luck.
The crash he’s predicting has two more phases, one more brief relief rally, then one more tsunami drop in mid-2023, one that may swamp us for another 30%.
How does a Zen Taoist prepare for such calamities?
By going with the flow, of course!
Zen Man Yo 