Harry Dent Blog | Are Markets About To Explode Upwards? | Talkmarkets
Founder, Dent Research
Contributor's Links: Economy & Markets

Harry S. Dent Jr. studied economics in college in the 1970s, receiving his MBA from Harvard Business School, where he was a Baker Scholar and was elected to the Century Club for leadership excellence. Harry grew to find the study of economics vague and inconclusive and became so disillusioned by ... more

Are Markets About To Explode Upwards?

Date: Tuesday, January 8, 2019 6:25 PM EST

Look… the crash of a lifetime ahead is inevitable.

But, it’s looking increasingly like we’ll see a last-hurrah short boom of a lifetime first. Something I like to call the Dark Window because it’s unexpected and most miss it.

Will you?

I hope not.

I hope you’ll be ready for it because, today I’m going to give you a few insights into what to watch for…

First, a Warning…

Most analysts see a deep correction here and then modest gains and only slight new highs in 2019.

Jeremy Siegel, the perma-bull, sees a “good” 2019 for stocks if we don’t have a recession, which neither he or I think is likely in the near-term. By good, he means a 5% to 15% rally. But 15% wouldn’t even retest the markets’ recent highs.

Expect the Unexpected…

But it doesn’t compare to the most extreme topping pattern we saw in 1999 to 2000. Look at this…

The whole bubble from late 1994 into early 2000 was up 622% in 5.2 years; then investors endured a 78% crash in 2.6 years, taking the index back near to its bubble origin, classic for my bubble model.

Look at that 34% flash crash in mid-1998. Painful. Ten percent more painful than the current crash thus far for the Nasdaq, at 24%.

The thing is, look what happened next… 

The Greatest Surprise of All 

When everyone was expecting the see their asses handed to them, the markets turned around and produced a blistering 282% rally into March of 2000 in 1.4 years…

That didn’t occur in 1929 or any other bubble of the last century. The only other time we’ve seen that was in the Tulips bubble and the South Seas final run into 1720.

And from the looks of the way markets are behaving now, there’s a good chance we’re about to see a similar Dark Window open again.

This means there’s the chance to make unimaginable gains before that inevitable crash sets in. And like I started out today by saying, there WILL BE a soul-crushing crash, very likely worse than what we saw on the Nasdaq into 2002 and more like the Dow from late 1929 to 1932.

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