A major global financial crisis is “imminent and unavoidable” and will happen in the next two years, according to respected economic forecaster Harry Dent.
Speaking at the Elite Investor Summit, Dent said global stockmarkets will fall and the housing market will also plummet due to demographic changes across the globe.
He predicted the Dow Jones would reach as low as 3,300 by 2020, having fallen to 6,000 by early 2017.
Dent, who has accurately predicted many market falls including the most recent China sell-off, also argued that the increasing ageing population will spark a sell-off in the housing market, which will cause prices to drop.
“When old people die, they become sellers of real estate. If the population of an economy has more old people than young people, you have more dyers than buyers and the simple rules of supply and demand come into effect,” he says.
Housing prices will not recover in the short to mid-term, he says, particularly for countries such as Germany, which have a top heavy age distribution.
Dent previously accurately predicted the unanticipated boom of the 1990s and its continuation into 2007 in his book The Great Boom Ahead.