Harry Dent: Next Year Will Be Major Bad for Europe and China
Harry Dent was interviewed on Fox Business and provided his outlook for the global economy.
Dent characterized the European plans to buy bonds as a “desperate move.” He said the European economy is the biggest question mark in the market today with Greece and Spain looking “more and more shaky.”
Dent speculated that in the next year you will see a big problem as a result of collapsing real estate markets in Europe.
Dent said he expects the stock market to go up a bit from here, but we’ll see a correction in the next month before we get a better chart.
Next year will be bad for Europe and China, according to Dent. He expects Greece to leave the European Union which will put pressure on Spain’s bank deposits.
Dent forecasts the Euro will reach parity with the U. S. Dollar. He added that Europe and the U. S. both have major fiscal and demographic problems, but Europe’s issues are more imminent.
Dent said the private sector debt bubble is more onerous than government indebtedness. He added that governments should assist in restructuring private debt as was done in Estonia and Iceland.