There have been many predictions of markets and economies crashing this year but in the Daily Mail today is a report from 3 well-known forecasters and authors Gerald Celente, Harry Dent and Robert Prechter that this year you had better prepare for an economic 9/11.
Just when you thought unemployment was dropping and stock markets were surging back, these three analysts today sent out a stark warning to Americans to brace for another financial crash.
Trend forecaster Gerald Celente advises buying a gun to protect your family, stocking up on gold if the dollar crashes and planning a getaway, so it’s no shock he’s preparing for an ‘economic 9/11’.
Share prices and unemployment are posting their best figures in four years since the recession hit, but Mr Celente, along with authors Harry Dent and Robert Prechter, says the rebound won’t last.
All three were profiled in a USA Today feature on Monday. Mr Dent, who had The Great Crash Ahead published last September, believes stocks are simply experiencing an artificial short-term boost.
Mr Prechter, who had a new version of Conquer the Crash published in 2009, is fearful of today’s economic similarities to the Great Depression and says the brief recovery will fail like in the 1930s.
‘The economic recovery has been weak, so the next downturn should generate bad news in a big way,’ he told USA Today, saying the markets look ‘very bearish’ for the third time in 12 years.
Mr Celente, who works as an analyst at the Trends Research Institute, which he founded in Kingston, New York, has been doom-mongering for years – so his latest concerns are hardly surprising.
But he told USA Today that a potential run on banks by savers could cause the government to invoke a national holiday and temporarily close them all, which happened during the Great Depression.
‘When money stops flowing to the man on the street, blood starts flowing in the street’
Gerald Celente, trend forecaster
It comes as billionaire Berkshire Hathaway chairman and CEO Warren Buffett today painted a happier picture of stocks, which he said are relatively cheap compared to other investments as the economy improves.
Meanwhile contracts to buy previously owned U.S. homes neared a two-year high in January in further evidence the housing market was slowly turning the corner, an industry group said today.
However oil prices have been spurred higher by worries over disruptions to Middle East supplies due to sanctions against Iran and expectations for greater demand from an improving U.S. economy.
But on the markets, the S&P 500 has risen nearly nine per cent so far this year and the Dow Jones is trading around the psychologically-important mark of 13,000. But the three experts aren’t happy.
Mr Prechter told USA Today both markets will crash back below their lows hit at the height of the financial crisis in March 2009. Unemployment fell last month to 8.3 per cent, a three-year low, and weekly jobless claims are at a four-year-low.
But Mr Dent believes that people will be left out of work again in 2013 or 2014 and U.S. markets will crash because central banks have been pumping so much money into markets that they are unrealistically strong.