The Crash Proof Retirement Show presents another panel discussion with Phil Cannella, Joann Small, and famed economic forecaster & bestselling author Harry Dent.
The expert panel covers the developing debt bubble, the impact of President Donald Trump on the economy, and what investors should do to protect from the economic storm ahead.
TRANSCRIPT:[Harry] My first book was our power to predict in 1989 but it was self-published it was for my newsletter subscribers back then and my small business consultants and speeches I was mainly speaking to small business because no fortune 100 company would listen to a new theory back then and then I wrote my breakthrough book in
1993 called a great boom ahead. [Phil] and why do you call it your breakthrough book? [Harry] well um it took off. Everybody back then was saying Japan was going to take over the world the United States was going to collapse we’re we’re a sunset. I said no Japan’s going to crash and we’re going to tell you – we and Europe are gonna have the greatest boom in history because of the difference in demographics. [Phil] And that’s very interesting the fact that you’ve honed in on
scientific demographics these are the warning signs, the weather of the economy how is it that you zero in on the ’08 crash? [Harry] 46 year lag on a birth index because that is when the average person Homer Simpson spends the most money people below average will peak a little before that more affluent people will go to school longer their kids will they’ll peak later but the average is 46 and I had that same indicator that same indicator that I only got in 1988 for the first time told me Japan was going to crash in the 90s and the US was going to see the greatest boom in history. [Phil] You talked about a debt crash coming, a reckoning coming and, my question is did it matter what President took place is Trump-anomics — which hasn’t been said yet – going to get us out, our sink is quicker [Harry] The right politician – and Obama could have done this because he didn’t cause the crisis. Trump’s coming in, he didn’t
cause this crisis, they’re coming in fresh they should say “we’re in trouble and here’s what we need to do to get out of this” and we’re not going to grow 4% when we’ve got four times our GDP in debt and then get another four times and entitlements that are unfunded we’re gonna have to restructure all of this and we’re gonna have to retire later because we’re living longer. [Joann] Would you say that the people that should really heed these warning signs are the people that are in or near retirement that are counting on their money if their money – you know, if they’re at risk and there and the market Falls just 40 percent it’s devastating. [Harry] And again at times like this like 1929 when when you see a
once-in-a-lifetime major bubble bubble boom and a crash like the debt the Great Depression and debt deleveraging and bubbles deleveraging it takes 25 years or more just to get back to even and and you don’t lose 40 percent you lose 80 or 90 percent in stock so it is devastating I wouldn’t even tell a 25 year old to be betting on stocks because they’re too overvalued now I’d be telling to put
their money in bond but yes aging baby boomers absolutely should be putting a premium on safety and preserving your capital after an unprecedented bubble rather than trying to get another -hope you’re going to get these gains for another year – it’s suicide! [Phil] Now Harry Dent, you’ve written two best-selling books we have your third is called the sale of a lifetime. Tell us why our viewers should be reading this book? [Harry] I have, you know, new cycles that I’ve incorporated in the last several years since the last best-selling book and in this book I also really focus on bubbles the whole history of bubbles I got a whole new model for bubbles bubbles are not black swan. when they burst they say oh that was a Black Swan a once-in-a-lifetime event no
these things build totally predictably and exponentially and they crash twice as fast as they build and they go back to where the bubble starts I can tell somebody how much downside they have in any real estate area or any stock or something roughly by understanding how bubbles work and people are like “oh nobody
can predict bubbles nobody can prevent bubbles nobody can see them” people don’t see them because they’re on a high they’re getting something for nothing and that’s what people buy they buy that something for nothing that 20% return with no apparent risk when they should be buying something that’s real