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A critical month for the markets

The stock market has a different reason behind its increase, and we have the central bank to thank for it.

Published

6 years ago

February 1, 2018

For more than three decades, my grasp of economic and business fundamentals, demographics, and cycles has allowed me to empower my readers… to let them see ahead of the curve and prepare for booms and busts in the economy, the business cycle, and stock markets long before their peers.

Then something happened that I never believed could happen…

In 2008, when the economic winter season began to take its toll, central banks stepped up and printed trillions upon trillions of dollars.

Because of the deflationary cycle we should have been experiencing since 2008, their efforts have had a muted effect on the economy. For all the cash they’ve injected into the system, a 2% growth on average is pathetic.

But their efforts have had an outsized impact on the stock market, creating the most unpredictable and dangerous situation for investors that I’ve ever seen.

I mean, markets are totally unhooked from fundamentals.

Stock prices aren’t rising because of the underlying companies’ performance.

They’re not going up because people are spending that much more money or because the economy is booming stronger than ever.

So why are they increasing? Because of the something-for-nothing environment that central banks have created.

I explain this in more detail in my latest video and then discuss what I think we could see next:

http://www.facebook.com/EconomyMarkets/videos/1670019576382559/

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DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.

Harry Dent

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 the state of his chosen profession that he turned his back on it. Instead, he threw himself into the burgeoning new science of finance which married economic research and market research. Identifying and studying demographic trends, business cycles, consumers’ purchasing power and many other trends empowered Harry to forecast economic and market changes. Over the last three decades, he’s spoken to executives, financial advisors and investors around the world. He’s appeared on “Good Morning America,” PBS, CNBC and CNN/FN. He’s been featured in Barron’s, Investor’s Business Daily, Entrepreneur, Fortune, Success, U.S. News and World Report, Business Week, The Wall Street Journal, American Demographics and Omni. He is a regular guest on Fox Business’s “America’s Nightly Scorecard.” Harry has also written numerous best-selling books over the years, such as The Great Boom Ahead, The Roaring 2000s, the Roaring 2000s Investors and The Demographic Cliff. In his most recent book The Sale of a Lifetime: How the Great Bubble Burst of 2017 Can Make You Rich (2016), Harry looks at the upcoming economic crisis and reveals how it could be the single greatest chance to build wealth we’ll ever see and how we can capitalize on such a unique and historical opportunity. He explains how many of the richest Americans in history have used this same kind of opportunity to quickly accumulate incredible amounts of money, in a short period of time.