What Is "The Great Depression Ahead" About?


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"The Great Depression Ahead: How to Prosper in the Crash Following the Greatest Boom in History" by Harry S. Dent is a financial advice book predicting a crash in the American economy between mid-2009 and 2012, with the economy remaining poor for a decade afterward. Dent's argument centers on demographic trends, the deflation of the stock market and a meticulous examination of past economic trends and cycles. Dent provides investment advice on how to prosper in the troubled times.

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In Dent's view, investors should have invested in cash and money markets at the time the book was written and then graduated to the highest-quality U.S. Treasury, municipal and corporate bonds and similar bonds in stable Asian and European economies. This investment strategy was intended to keep assets liquid, as Dent predicted untold buying opportunities when other assets fell in value due to the economic collapse.

The book also touches on the volatility of equity investments, the economic impact of the development of megacities in South and East Asia and terrorism's economic roots.

Dent, a best-selling author of numerous financial books, publishes a free daily newsletter at HarryDent.com. While he has accurately predicted some events, such as Japan's economic collapse in 1989 and the housing bust of 2006 and 2007, some of his other predictions have not been as prescient. For example, his prediction that the Dow Jones Industrial Average would rise to 40,000 points by 2009 and that it would fall to 3,800 in 2012 both proved false. He has been criticized for merely appealing to investors' emotions as a result.

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