The Fastest Way To Build A Six Or Even… Seven Figure Real Estate EMPIRE!
In my early twenties, my brother handed me a copy of one of Harry Dent’s books, and I was an instant fan. In The Great Boom Ahead, he stood virtually alone in forecasting the economic growth of the 1990s, and in The Demographic Cliff, he foreshadowed the deflation that was about to hit.
Fast forward to today, and I couldn’t be more excited to talk to Harry about his new book, Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage. His latest work outlines why we’re on the verge of massive social, economic, and political upheaval and the steps everyone can take to protect themselves.
In our conversation today, we dig into his powerful methodology for accurately predicting boom and bust cycles, how living off of stimulus simply fuels inflation and delays the inevitable, and why high-end residential and commercial real estate are likely to get hit hardest. He also shares some great tips and how to prepare your portfolio for the coming crash and the potentially incredible buying opportunities on the other side.
Key Takeaways with Harry Dent
- Why Harry thinks that our current bubble has peaked for stocks–and why he’s expecting to see certain stocks drop by as much as 86%.
- Why certain real estate markets will likely drop by at least 25-30% in the years to come.
- The advantages of owning apartments and investing for cash flow–and why now’s the time to sell your assets that don’t cash flow.
- How the Fed’s decisions during the Great Recession and the COVID crisis propped up an economy that should’ve stayed sideways.
- Why 2025 could be our next big economic boom.
Harry Dent Tweetables
- Follow Harry Dent on YouTube | Twitter | Facebook | LinkedIn
- Great Boom Ahead: Your Guide to Personal & Business Profit in the New Era of Prosperity by Harry Dent
- The Demographic Cliff: How to Survive and Prosper During the Great Deflation of 2014-2019 by Harry Dent
- Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage by Harry Dent and Andrew Pancholi
- The Infinite Game by Simon Sinek
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Connect with Josh Cantwell
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Josh Cantwell: So, hey, guys. Welcome back to Accelerated Investor. I’m your host, Josh Cantwell. Today, I have an amazing treat for you. Today, I am interviewing a special guest. His name is Harry Dent. Harry Dent has been an author of amazing books, including his book, the Great Boom Ahead, published in 1992, where he stood virtually alone in forecasting the unanticipated boom of the 1990s. His book, The Demographic Cliff, showed that we were facing this great deflation after several years of stimulus and what to do now. And his latest book, Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage. Here, he reveals why the greatest social, economic, and political upheaval since the American Revolution is now at our doorstep. We’re going to talk today, number one, about why stocks are poised to go down as much as 86%. We’re also going to talk why certain real estate markets are poised to go down over 25% to 30%. We’re also going to talk about why cash flow in apartment buildings is one of the best assets and best ways to make it through a recession.
We’re also specifically going to talk about some of the Fed’s actions around the 2008-2009 crisis and their actions during the COVID era and how that’s propped up the economy for the last 13 years when we really should have been in a very flat kind of sideways market. And also, why 2025 and 2026 is bound to be the next great boom. Here he received his MBA from Harvard, where he was a Baker scholar and was elected to the Century Club for Leadership Excellence. You’re going to want to subscribe to Harry’s newsletter at HarryDent.com. This is a fantastic interview. One of my favorite authors. Matter of fact, my brother handed me a book by Harry Dent over 25 years ago and I fell in love with Harry Dent’s work a long, long time ago in my early twenties. So, I’m super excited to have him on the show today. Here we go.
Josh Cantwell: So, Harry, welcome to Accelerated Investor. So happy to have you on the show to talk about the world, the economy, and what exactly is going on over the next couple of years. We’re in an interesting time. So, thanks for carving out a few minutes to share with us on Accelerated Investor.
Harry Dent: Yeah. Great to be here.
Josh Cantwell: Harry, listen, the president just gave his State of the Union address last night. The Federal Reserve just met a week ago, raised rates another 25 bps. And we saw Chairman Powell kind of walk back some of his talk about thinking that we were going to be pushed into a recession. It seems to be a little bit more delicate about that discussion right now. Just over the last week or so, it seems like a lot of these changes are happening. What’s your take on the market right now?
Harry Dent: Okay. So, something I’ve been looking for a long time, Josh, I mean, because we’ve been living off of stimulus since 2009, okay? This is what people don’t get. The boom from 1983 to 2007 was all baby boomers’ greatest boom. And I was the first one to call that and say, “This is what’s happening that we were going have a great boom,” not a modest boom after the early 80s crash in Japan, rise of Japan and Asia. Everybody thought we were done. I said, “No, we’re not done,” but we were kind of done in 2010. We’re in a plateau between the 2007 peak and the huge baby boom generation spending away, which happens on a 45-year lag. 46 is the peak of spending for that generation. It’s more like 47, maybe 48 for the millennials. Their peak will be 2037, so well ahead of us, and their boom should be naturally from around 2025 to 2037. So, a shorter boom, not as extended. It should take us about back to where the baby boomers hit the peak, but not higher. But what we’ve had in between is massive stimulus.
When we had the 2008 downturn, which I predicted in the early 80s, I said, “Look, 2007 was going to be the peak of this great boom and we’d have a weak economy from 2008 to 2022, much like 1930 to 1942 back two generations when a similar thing happened, a bubble boom and then a bubble burst but it’s also a generational downturn.” New generations entered the workforce, earned and spend more money up to a peak in spending at 44 for the last generation, 46 for the baby boomers. It’s tracking at 47 now for the millennials. It might end up at 48. But again, that makes the economy predictable. I just flagged the birth index, which I adjust for immigrants and I can do that with a, well, I know the exact immigrants that come in. We know the forecast for that and I know the age of immigrants so I can adjust them in as if they were born here. So, I have an immigration-adjusted birth and I move it forward 46 years and that’s what tells me when the economy is going to boom and bust. It’s the simplest indicator in history. And in the 80s, I was chastised for being too bullish when we started booming again after the crash. And now I’m chastised for being too bearish. Well, tough crowd. Okay.
I just follow something that’s worked and makes a lot of sense instead of and I don’t look at politics. I don’t care what the president said last night. It just doesn’t matter to me that much. In the short term, I use a whole different set of technical indicators to look at the market. So, it’s really about, is everybody piled in or not? If they overbought or oversold? A whole different thing in the short term. Long term, we’re in a weak period. We’re still in this weak period that started in early 2008 until about the beginning, late 2024, beginning of 2025. So, since the Fed and central banks around the world, but it’s been the most aggressive has been the Fed here, since they have created a second stock bubble and real estate bubble on their own without the help of the economy. The baby boomers created the first ones, first bubble in real estate and the first bubble in stocks. So, that first stock bubble was early 2000 peak. First real estate bubble was early 2006. So, now we have a second bubble that’s much larger, especially in stocks and it’s like this bubble wasn’t even warranted but it just means it’s got further, it’s more vulnerable.
So, what I’ve been waiting on is the central banks to screw up. Well, they just did that. What they did was they overreacted. The screw-up was not there tightening. The screw-up was overreacting to a short-term crisis called COVID. They printed $5 trillion and then added another five, a big boost in fiscal stimulus, another 5 trillion, which is much more inflationary or more directly so. And now suddenly we went from near-zero inflation to 9.1% inflation, totally caught. I have an inflation indicator that said all the way back that it would go from 18% down to 1% now and eventually near zero. We should be at 1% inflation. We’re at 9.1. Therefore, they have to tighten. So, they overreacted to a short-term. Look, COVID by definition is something that’s going to pass. There’s nothing wrong with the economy. And why would you react? You know why? Because they’ve been stimulating the economy since early 2009 to get us out of that downturn, which would have gone a year longer and much deeper in unemployment and the stock market. They boosted out of that thought, “Oh, one year should do,” and they’ve been stimulating ever since. Why? They don’t realize, what my simple indicator said, we’re in a weak long-term period like the 70s for the Bob Hope generation, the 30s for the Henry Ford, and now this period into 2022.
Josh Cantwell: So, your takeaway, so reading what you just said, we should have been in a weak period from 2008, 2009, all the way until 2024. And at that time, we should have then had an economy that began to regrow again. Those baby boomers worked their way through. Now, the millennials are having household formation. A lot of those kids, the kids, they’re in their thirties, mid-thirties. They’re forming houses. They’re doubling up on incomes. They’re buying houses. That should then create a boom from 2024 to about 2037 I think you said.
Harry Dent: Yes. So, shorter boom but a good solid and that’ll be a good fundamental boom. The problem is they’ve created another bubble by overreacting to the downturn of the baby boomer, which was natural. People don’t need as much stuff until the next generation come. Baby boomers have bought their house. Now, people are just buying a second house for speculation or trading up to a bigger house they don’t really need now that their kids have left the nest. And that’s precisely what causes the peak in spending at 46, 47, whatever generation, is when people’s own kids leave their nest and they don’t need to spend so much money and earn so much money and they slow down, you know? So, yeah, we’re in a weak period but if you look at the stock market, it’s way higher than it was at the peak in 2007. So, we have the greatest bubble, and I call it the everything bubble. And that’s something a lot of people are saying, “Hey, yeah, we had a stock bubble 2000, but not real estate and real estate or 2006 real estate bubble, but not stocks.” Now, everything in the world, it’s global, it’s stocks, it’s real estate. The only thing that’s burst so far is commodities. Gold is the only one that’s held up there and that will follow in the next year or so when things get tough like gold crashed in 2008.
So, we have a bubble that I think just it finally peaked for stocks. In November for the Nasdaq, in early January for the S&P, we had the first crash. Now, one of the things I had to do, Josh, after knowing this thing’s been extending is then how am I going to know this damn bubble even as artificial is over? I look back at all the bubbles in history. Bubbles take 30% to 40% before they really crash and don’t come back. And that’s what it takes to take the wind out of a bubble. Well, we got that. Nasdaq down 34% in the first crash into June and then the second, a lower low, down 38%. That told me, okay, we finally put in a long-term high. The Fed’s going to have a hard time getting a new high now that we’ve fallen this much and after $10 trillion in stimulus and two years later we go into another stock crash and everybody’s expecting a recession now, even though it hasn’t quite hit yet. The Fed finally lost their game. And I think if they hadn’t overreacted to COVID, they might have kept this thing going longer. They have to tighten now. And inflation coming down, yeah, but not that fast because they’re the ones that built it in. There is no natural inflation here. This is entirely because of the stimulus that was off the charts. So, this is going to get out on the histories. What did these guys do? They just had a giant orgasm in public. You know, I just like people will look back at this and say, “What were they smoking?”
Josh Cantwell: Right. So, in the next two years, so for 2023 and 2024, we know that in 2024, based on your theories that the millennials will start spending. They’ll be forming…
Harry Dent: By 2025, they will naturally be driving trends back up without stimulus.
Josh Cantwell: Should the hope be then if you’re a smart investor, that these down cycles are good, they’re good to reset prices in high to low, let the stocks come down, let even housing come down.
Harry Dent: Real estate come down. Yeah.
Josh Cantwell: Absolutely. I’m a big proponent of boom-bust markets for real estate. That’s my sweet spot, boom-bust.
Harry Dent: How are we going to get a good deal if we don’t have booms and busts? How are smart people going to get good deals? Yeah. It’s crazy overpriced. I travel the world. It’s crazy everywhere. It’s worse in London.
Josh Cantwell: Especially the clients in the country, San Diego, San Jose, you have Carolinas and Florida.
Harry Dent: Young people can’t afford to buy a starter home. So, that is a bad thing. It’s good for baby boomers who are aging now. They’re in their sixties and seventies and eighties and they’re in their retirement phase so this just elevates their assets for retirement. Good for baby boomers, no question about that, although they don’t deserve it but it’s good for them. This is terrible for the up-and-coming millennial generation that the home that used to cost $100,000 a starter home just 10 to 20 years ago is now 440,000 and rising, although I think we’re peaking right here. So, again, this is necessary. It’s been put off. I do not think the central bank should play God and think they’re smarter than the economy. “Oh, they think we shouldn’t have recessions.” Oh, really? Have you studied history? We would have no economy if we didn’t have recessions. Recessions are the things that clean out the zombie companies and the bad debts and all the mistakes and knock out the losers and let us come out stronger. Again, recessions are just as necessary to long-term growth as booms. Recessions are where the innovations happen, the cost-cutting, lean and mean, and then it plays out and expands in the next boom.
If we don’t have this recession, this 2025 to 2037 boom of the millennials, there will be a nothing burger. So, this is a good thing. I just finally think the Fed finally blew it or not, that they’re not going to be able to stop this crash. And now we need one more thing to happen for me to feel like this crash of a lifetime I’ve been talking about is going to happen. We need to make a new low. With 10,089, I’m tracking more the Nasdaq, the sexier one of major indexes, which is going to be more tech-driven and all that stuff. We made 10,089 low in October. We bounced since then. You would expect same thing, the 1929 first crash, it was a five-month bounce. They expect a bounce into early this year, maybe as late as March, but then the next wave should be, Josh, at least as big as the first wave. That would take us down 60% instead of 38% on the Nasdaq even after this bounce and then people would say, “Oh, my God, the Fed, the central banks have lost control. Oh, yeah they weren’t able to prevent it,” then we will be in a recession. The recessions everybody calls more by the fall of 600 trillion of financial assets around the world. This recession is not more demographics. The demographics are already on the bottom. We don’t go lower there. It’s not a demographic. We just come down to reality but it’s going to be this financial asset bubble.
And I’m the only guy I know in the world, Josh, that has put a number on that. It’s 574 trillion a few years ago, which means it’s going on 600 trillion, six times global GDP. That is the biggest bubble in the world. All financial assets, gold stocks, real estate, commodities, everything, all financial assets. It should normally, historically, two times, three times is overvalued in history. We’re at six times. This is a big story. It’s not that the economy’s weaker and the millennials are going to pick up the slack and maybe already started. It’s going to be this financial asset bubble and people who say, “Oh, honey, well, the last time I checked, we had a million-and-a-half net worth. Oh, now we got 600,000. Oh, I guess we’re not retiring, Herb. So, you withdraw our money in the stock market and bought a house we couldn’t afford.”
Josh Cantwell: Yes. So, you’re saying, Harry, that we should be in a weak period right now. We should be, like you said, 200 million to 300 trillion, two to three times global GDP. The value of these assets, they’re at 600 trillion. They have to come down by at least 50% to get back to normal. The only reason why they’re there is all the stimulus of 2009, all the stimulus of COVID, that has to pull back. That doesn’t necessarily mean that the economy is in really weak shape. You look at unemployment right now is at a 53-year low. You look at the companies that seem…
Harry Dent: They couldn’t be better right now but all I’m saying it’s not natural factors. The 2007 in of that was all natural. Productivity from aging baby boomers, higher spending and income aging baby boomer, all meant to be I predicted it in advance, didn’t have anything to do with stimulus, nothing to do with the government. The government mattered once that when we hit a bigger downturn than anybody expected, other than me and Robert Proctor and a few other people who study history. And then we got into this totally, we’ve never had a stock market boom of any length that has been totally artificially driven, and that includes the second real estate boom as well. Real estate should have peaked in 2006. That’s what’s happened. So, all we had to do is come down to reality and reality is way lower than any analysts thinks today, anybody.
Josh Cantwell: Go to your website, go to HarryDent.com, subscribe to your newsletter, and get that.
Harry Dent: So, we have a free newsletter there and we also have a page but you can get on the free newsletter just boom, HarryDent.com.
Josh Cantwell: Perfect. So, go there all of my subscribers, listeners. Go to HarryDent.com. Get on the free newsletter. Start with that. Upgrade if you want. If somebody owns assets now, obviously, real estate is not extremely liquid. It’s not like you could snap your fingers and sell it. You own an apartment building, you own a self-storage building, you own a portfolio of rentals, and you’ve owned them for a while but you see this weakness coming, this asset bubble bursting over the next two years resetting, and then millennials helping the economy recover after that in 2025. With those types of assets, if you have, I tell my audience, “Look, the only time you can really get in trouble is if you sell or refinance at the wrong time and get the wrong kind of debt that has a balloon payment on it and you’re forced to sell a refi at the wrong time.” So, if you’ve got good debt on it and that’s going to carry you through into 2025, with those assets, is the model or the advice, “Hey, hold on. Make sure it cash flows. Cash flow through this trough, and then just let it kind of take back off in 2025,” is that the advice with real estate type of assets where cash flows coming in and we can withstand a downturn because the cash flow is going to carry us?
Harry Dent: Yeah. Only where you guys are. Not for home builders building new McMansions, not for people sitting in a McMansion as their kids are leaving the nest and they don’t need half of it anymore. You are in the only sector multifamily apartment that holds up in recessions and does not go with this peak spending cycle as big homes and other parts of real estate do, and commercial. Normal commercial, not commercial real estate for businesses goes with the business cycle. You’re in the cycle that will hold up the best. Now, everything will be hurt by a downturn of this magnitude, but the apartment buildings will be the only thing that holds up well. And if you can keep your cash flow going, then you can use that. But my advice is to use it, yes, get through it. If you can sell it now at a great price and you’re looking at retiring anyway, I would do it now. Don’t wait. It’ll only get a little worse. But if you can get through this, yes, the world is going to open. You’re going to have properties that did not go down as much. Cash flow vibes, throwing off cash flow, which means you can take over what? A lot of failing properties that did go down more, whether they be an apartment, condo-apartment sector, or maybe you want to buy some other real estate.
So, you could buy, you could diversify into other real estate but the point is, other real estate, especially high-end residential and commercial will get hit the hardest. Comfortable with cash flow and you can use that track record to go to bank and you see a business building right down the street that’s hot. And there’s like you can buy for $0.40 on the dollar and you can use your assets to say, “Give me the loan,” and you’ll be the only one that looks creditworthy in the real estate. Then you could buy failing apartment buildings or you could buy failing commercial office buildings.
Josh Cantwell: So, if there’s this big of a failure, Harry, in these other assets, people that have lent on residential that goes down or fix and flip type properties or new construction they’re building and they try to sell them, they’re selling them at the wrong time, banks are then forced to take those assets back no different than the 2008, 2009, 2010 crash. Does that create another systematic problem with the lenders, with the banks?
Harry Dent: No question. Okay. Here’s my simplest rule today, Josh. Think of 2008, 2009, whatever your business, whatever your real estate, blah, blah, blah, blah, blah, whatever affects you, okay, the stock crash, unemployment, apartment buildings, whatever. Multiply that times 1.5. This crisis is going to be 50% worse. Stocks went down 57% in the 2007 to 2009 crash, I’m predicting 86% for the S&P and 92% for the Nasdaq. The S&P will be 50% harder crash. Unemployment was 10% in the last recession. I’m predicting it’ll be 16%, not as bad as 1929 to 1932 when things were wacky and all in a whole different economy, but 16%, well, that was a lot of unemployment. And the unemployment is what’s going to affect people in the apartment business more than anything, that people being laid off. It’s not that your cash flow if you can keep your clients will hold up better than other places and the values of your real estate will hold up better than other real estate. But you have to worry about, “Oh yeah, well, some percentage of the people in my apartment building are going to lose their job, and that is a problem.”
Josh Cantwell: So, we’re not going to push rents as hard, like more vacancy.
Harry Dent: Right. Not a time to push rent. Yeah. And if somebody, if you know that it may be hard to replace that person, well, you might give them a little more rope instead of kicking them out, right, if they start defaulting. And again, you have to also think of the time but, okay, if you’re going, “How far do I have to go to get through this?” I would say if you can get through the end of 2024 and you’re still cash flow positive and looking good, you’re going to look better when the economy comes back. And everybody else has lost their credit ratings or lost their real estate assets have gone down more than yours, and they’re not in a position to pounce on what I call real simple but the sale of a life. So, the crash of a lifetime means the sale of a lifetime on financial assets from stocks all the way down to real estate.
Josh Cantwell: 2026, Harry, I mean, it looks like at that point, if we’re in a major recession and all these things are happening, the Federal Reserve’s then going to have to drop rates again to stimulate the economy. The debt will get cheaper, which means it’s easier to borrow money and also to buy these assets that are on major, major discounts. That’s going to be happening in 2025, 2026, 2027, going to be a great time to purchase as well as have very favorable debt terms, very inexpensive debt. As that Federal Reserve funds rate comes down, the ten-year Treasury will probably come down, the SOFR rates will come down, bridge financing, the cost of that will come down. Be a great time to buy things on sale with cheaper financing.
Harry Dent: Now, here’s the problem with cheaper financing. For most people, it’ll be no financing and banks aren’t going to lend money to anybody. People in your industry in multi-family apartments are going to be the ones that will do this with good cash flow and didn’t lose much. Maybe the properties went down a little bit. Nobody really knows what they’re worth anyway, but their cash flow is strong. That’s going to be the type of people banks will say, “Well, we will lend to you because you didn’t go down.” Anybody that saw their business go down and big layoffs or their financial assets get cut down because it’s going to be harder to get a loan. Even though interest rates will be lower, it’s going to be harder to get a loan. People in this sector because they will still have strong cash flow will be the ones that will get those loans. They’ll get out. But it may be a little harder to get them. So, yes, lower interest rates for sure. So, borrow all you can and reinvest and buy things while they’re at the lowest. And another thing about stocks versus real estate, when stocks crash, they bounce back quickly. Real estate took to 2012 to bottom when stocks bottomed in early 2009.
So, your people in real estate are going to have a longer period to be able to find opportunities and leverage whatever their success is and wait until maybe credit. It does get a little easier because the general economy’s doing well, even though real estate’s not coming but it’s slow to come back to take advantage of this. So, take all of that in account but it really is people like, “Oh, Harry, you’re so doom and gloom.” I’m like, “Shut up. I was the most bullish guy in the entire world in the early to mid-eighties.” Nobody saw the boom. They saw the boom in Japan. Nobody saw the fall of Japan, which I did, or the incredible boom in the United States with baby boomers. I’m not a bearish person, but you cannot have booms without bust. Busts are necessary for keeping the economy healthy of the eliminate is the cumulation and the elimination cycle. We can’t eat without you know what, okay? It’s just the law of nature. But this is where the biggest opportunities come. When things crash and the people who protected their assets before they went down or still have positive cash flow, which few people in the estate business will, are on top of the world. You’ll never see a better time and you won’t see it the rest of your lifetime an opportunity like this to buy real estate or other apartment buildings or other income…
I would really myself look at going into the big – I would want to diversify into the big office sector for real estate investments because they will get hit hard. You’ll get a better bargain and probably than in your own apartment sector, but either will be opportune and, again, yeah, lower interest rates but, yeah, try to get a loan when banks see nothing but failure.
Josh Cantwell: So, Harry, as we round third here and head for home with this particular segment, this particular interview, what do people do then over the next two years? Do they sell their assets now even though they’re down 20%? You’re expecting this bigger downturn? Is the economy down again?
Harry Dent: That’s right. Especially real estate, it’s slower. I mean, stocks are already down as much as 40%. But we have a bounce here. They’ll only be down 20% after that. I’m predicting the Nasdaq will bounce about 13,186, another so many percent, 3% or 4%. That’s a great… If you’re in stocks, it hits there. That’s the time to sell. If you don’t sell then, it’ll get way more painful. Then real estate, though, is just basically topping. It’s not too late to sell real estate, especially in the more vulnerable sectors. I hate to say this. I would rather sell my McMansion and create more money to buy more apartments and to buy a more affordable, smaller home if I’m older and need to trade down. In other words, sell the McMansion now, trade down a few years later when even a smaller house is maybe 40%, 50% off, and have more money to put in your apartment business. So, sell the vulnerable real estate now. It’s not too late to sell it and move it. You know, if you get a good offer, take it. Don’t say, “Well, wait enough.” There’s not long here. I think as soon as, and the warning signal I give to everybody, you see the Nasdaq rate that 10,088, 89 level and crash through that, that’s saying the Fed, it did not prevent the downturn. We are going into recession. Stocks are going to crash much lower. Real estate will follow.
And so, once you see that, you can confirm this is true. If the Fed can keep that from happening, we may just go more sideways for a while. I don’t think they can stop this. I think they already overreacted, overstimulated, blew it in COVID, and now have to tighten long enough. They’re not talking about they backed off at 25 basis points but this latest jobs report just said, “Well, wait a minute, better rethink that, buddy.” They’re going to have to at least keep tightening to some level for a number of months ahead. I don’t think the economy and the stock market can take that. I think that means continued crash. And then once it crashes, that changes because people don’t get it. Once stocks go down enough, that changes consumer psychology and faith in the Fed. Everybody thinks the Fed won’t let… And people tell me, “Harry, the Fed won’t let this happen.” I’m like, “Well, it’s already started to happen and we get one more whack, they’re done.” Their credibility is gone.
Josh Cantwell: Fantastic stuff here. Listen, as we round out and head for home here, where exactly should our people go? HarryDent.com, subscribe to your letter.
Harry Dent: HenryDent.com. You can sign up, get on our newsletter immediately. Now, you can always sign up for our newsletter. It’s only like $200. It’s not an expensive newsletter. But you get on a free newsletter, get to know us, and then even decide. I tell people it’s probably better to get on the real newsletter. But the weekly newsletter is good. I just put out a great article yesterday. So, every Tuesday, you’ll hear from me and every Wednesday you’ll hear from my partner, Rodney Johnson. You get two good articles a week for free. You can’t go wrong with that.
Josh Cantwell: Fantastic stuff. Harry, listen, thanks so much for carving out some time today for us on Accelerated Investor.
Harry Dent: Thank you, Josh.
Josh Cantwell: Well, listen, guys, I hope you enjoyed that interview with Harry. I absolutely love his energy. So, here are some of my takeaways. Number one, if you’re in financial assets right now, that does not cash flow, sell them. There’s the stock that the stock kind of uptick. This kind of fake rebound is happening. Harry’s predicting that that stops and then stocks drop back off. When that happens, sell your stocks, especially your technology stocks. Number two, if you own real estate assets that don’t cash flow, fix and flips, wholesale deals, rental properties, sell them now, unload them, especially if you’re in a boom-bust market like the Carolinas, Florida, parts of Southern California, San Jose, San Diego, Phoenix, Arizona, Austin, Texas. The biggest booms are happening there. The biggest busts are going to happen there, especially with the cost of debt going up and also if the economy goes into recession. Number three, move those assets into cash flow, cash flowing rentals, cash flowing apartments. As Harry mentioned, the value of apartment buildings may go down but who cares? If you are in a buy-and-hold, if you’re playing the infinite game, again, one of my favorite books, Simon Sinek, The Infinite Game.
If you’re playing the infinite game, you’re going to hold those assets through this trough of 2023, 2024. By 2025, by the time that rolls around, hopefully, this recession has happened. Hopefully, the stock market collapse has happened and things are now starting to pick back up because the millennials are into their major household formation timeframe. They’re forming houses, they’re forming households, they’re buying assets, and things start to boom again. At that same time, I’m betting that the Federal Reserve is going to be reducing interest rates. And because I’m going to be bankable and hopefully you’re bankable at that time, you can borrow money very inexpensively to buy assets that are on sale. That’s the takeaway from this episode. If you enjoyed it, hit the subscribe button right now. Share it with your family and friends. Share this all over social media. Make sure you leave us a five-star rating and review and we’ll have Harry back again very soon.