Days after US economist Harry Dent warned of an impending market crash that could be far worse than the Great Recession, National Stock Exchange Managing Director and CEO Ashishkumar Chauhan asked Indian investors to be cautious to avoid losses.
"Many experts predict such crashes at regular intervals. Sometimes such predictions also turn true. Thus, investors need to be cautious and invest in a way that they do not incur any loss when such things really happen," he said. Chauhan was speaking to media in Ahmedabad on Wednesday evening after addressing the convocation ceremony of Ahmedabad-based Entrepreneurship Development Institute of India (EDII).
Dent, 71, who is also a financial author, pointed out that current market stability is deceptive and that when the "everything" bubble bursts, it will be the "crash of a lifetime".
Speaking to Fox News Digital earlier this week, the author of 2009 New York Times Bestseller 'The Great Depression Ahead', said pumping more money into the market might seem to improve the economy in the long term, but the real impact will only be revealed when the bubble bursts.
Citing the recent rally in stock of chip maker Nvidia, which became the most valued company in the world, Dent said, "In 1925 to ‘29, it was a natural bubble. There was no stimulus behind that, artificial stimulus per se. So this is new. This has never happened."
"What do you do if you want to cure a hangover? You drink more. And that’s what they’ve been doing. Flooding the economy with extra money forever might actually enhance the overall economy long-term. But we’ll only see when we see this bubble burst," he explained.
"And again, this bubble has been going 14 years. Instead of most bubbles [going] five to six, it’s been stretched higher, longer. So you’d have to expect a bigger crash than we got in 2008 to ’09," warned Dent.
Predicting the possible numbers of the crash, the economist said, "I think we’re going to see the S&P go down 86 per cent from the top, and the Nasdaq 92 per cent. A hero stock like Nvidia, as good as it is, and it is a great company, [goes] down 98 per cent. Boy, this is over."
