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