This isn’t something you’re going to hear from the mainstream media or any financial news outlet. In fact, it’s something most economists in the U.S. choose to ignore.
That’s because, according to bestselling author and Harvard-educated economist Harry Dent, most don’t understand the most important factor in our economy: “People… or more specifically, demographics,” he says.
Dent has spent decades analyzing spending trends, economic cycles, and accurately forecasting major financial events like the roaring bull market of the 90s, the dot-com crash in the early 2000s, the 2007-2009 financial meltdown and oil’s shocking fall in 2016.
Today he’s passionately talking about our economy’s strongest indicator of health, which goes hand in hand with his research into demographic trends, and what it now says about the direction we’re headed very soon.
No, he’s not talking about GDP, income, employment, interest rates or even stocks.
Dent firmly believes the strongest evidence of a potential crash lies in the real estate market…
“The leading economic indicator isn’t the stock market. The stock market can go to more extremes, because most people don’t own a lot of stocks, and the stock market doesn’t affect them or their jobs nearly as much as real estate, which affects people directly.”
According to Dent, 62% of people in the United States currently own their own home. This means variables like mortgage rates and housing prices have serious, direct impacts on their livelihoods.
But even those who don’t own their homes are being affected by this housing bubble, “In more and more cities, people are spending 30 – 40% of their incomes on rent which makes living hard.”
Housing and construction make up the largest industry in the country, “so the housing market’s booms and busts affect the economy most directly.”
“When the real estate market bubbles up and it becomes unaffordable to buy and less affordable to rent… and when the government has to reverse their zero-interest rate policies and mortgage rates go up, this bubble will burst. There are limits to bubbles,” says Dent.
This is very likely to be the first bubble to burst, before stocks.
But this is something we should all be very familiar with because “right now the housing market bubble is telling a story we’ve seen play out before where it’s just a symptom of a larger problem that lingers just over the horizon.”
Looking back to 2006, this is exactly what led to the downturn, when prices peaked, starting declining slowly until they plummeted… real estate was just the first domino to fall.
Wouldn’t it have been nice to prepare for the Great Recession before 2007… to have known where to turn, to not get completely wiped out?
Well, here’s your chance to prepare now while you still can, because the warning signs are clear.
Harry Dent has all the details about what’s right around the corner in his latest book, Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage.
Inside this playbook guiding you through “The Great Reset,” he gives you all the tools you need to prepare and survive as the world we know is turned upside down.
This book is all about leading you through the revolution ahead and helping you understand what drives economic growth and decline, so you know exactly what to expect in the months ahead.