Are we headed for a depression? (Yes, in 2010)
Harry Dent's New Forecast I n a recent article from Canadian Business Online , Harry Dent explains why his forecast for the Dow's high was way off. Basically, Dent says that he underestimated the strength of the bull market in commodities and the negative geopolitical environment. Dent's overall outlook for the future goes like this: The U.S. economy will be in recession between June and October. That will take the pressure off commodities, which will fall throughout the second-half of 2008. Later this year into early next, a rally in stocks will follow. But then? That’s it. “Between mid- to late 2009 and late 2010, runaway commodity markets collide with the broad peaking of the baby-boom spending wave, and that’s going to create a crash,” says Dent. “The boomers will be spending until late 2009. After that, the extra support the boomers delivered is going to progressively fall out of the economy, and that’s going to be the final nail in the coffin on the postwar exp...