Stock Market Crash in 2013 Predicted With a DJIA of 3,000
Economist Harry Dent sees a cataclysmic drop in stock prices that’s going to erase more than 70 percent of the market’s value by 2013, with the Dow Jones Industrial Average plunging to 3,000 points.
“I think the stock crash started in late April 2011 is just the first wave down,” Dent, who heads his own economic research firm HS Dent, tells CNBC. The Dow has dropped about 10 percent from its April 29, 2011 high as of September 16, 2011.
“On the Dow Jones — I think the stock market crash starts in 2012,” says Dent, author of the upcoming book “The Great Crash Ahead.”
He sees the bear market downturn that lasted from October 2007 to March 2009 and took 8,000 points off the Dow as a guide to what’s going to happen this time around. Global consumption is headed down, Dent says.
“Baby boomers around the world, and all the developed countries — Europe, North America, Australia — they have peaked in their spending cycles. They’ve been driving up real estate prices and stock prices and the economy for decades, and now they’re going to be saving and not borrowing,” Dent says.
Not everyone agrees with Dent that stocks are in trouble.
Vanguard Group mutual fund founder John Bogle sees annual returns of 7 percent for equities in coming years. “Your money will double in 10 years,” he tells The Wall Street Journal.
“How bad is that? People ought to get over the illusion of higher expectations.”
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