Harry Dent Says the Next Crisis Could Be Put Off Until Next Year

By on April 5, 2012

CNBC’s Rick Santelli interviewed Harry Dent yesterday regarding his expectations for the stock market and Federal Reserve actions. Dent, founder of H.S. Dent, is the author of several books including The Great Crash Ahead: Strategies for a World Turned Upside Down.

Dent began the interview by saying he just told his subscribers to short stocks and the Euro on Tuesday (two days ago). He views the recent market weakness as an intermediate-term market correction.

Dent said he didn’t expect the ECB to come up with $1.3 trillion and QE2, and bond yields to keep going down while the economy strengthened. Dent added there was enough stimulus to put off a major crisis this year.

Dent stated stocks were way overdue for a correction. The question for Dent was whether it would be a 5-8% correction, or if it would be 15-20%. Dent said it would depend on a lot of things like oil prices.

Dent said he was cautious on the market here, but feels there will be one more rally. Dent stated this is an epic battle with the government saying we can’t let the economy slow down and let the free markets deal with the debt problem, while they’re ignoring the fact that Iceland already dealt with their debt and they now have the strongest growth and falling unemployment in Europe.

Adding debt to debt is not the right policy and Dent said he didn’t like what was happening, but a “market on crack only wants more crack.” Dent added that the market was disappointed because they’re not going to get QE3 right around the corner.

Santelli said if the jobs number comes as expected, or less than expected on Friday, we could see a much larger equity sell-off.

The interview continued with Dent commenting on the perversity of the Fed’s zero interest rate policy, the timing of QE3, and when the next crisis will occur.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>