Investing.com - While fewer analysts and economists are pessimistic about the economy and markets, some, like economist Harry Dent, are still concerned about a potential imminent crash.
Dent shared his concerns in an interview with Fox Business on Sunday, warning that the stock market could face a significant correction, leading to a crash more severe than the one investors experienced during the great financial crisis.
According to Dent, stocks currently appear to be in the "bubble of all bubbles" due to excessively lenient monetary and fiscal policies that have inflated asset prices over the last decade. He predicted that the bursting of this bubble could lead to a plunge of up to 86% in the S&P 500, and up to 92% for the Nasdaq. He even mentioned a potential drop of 98% for NVIDIA Corporation (NASDAQ:NVDA) alone.
Investors now face the challenge of navigating the stock market amid crash risks and determining when and if the bubble will burst. During such periods, it's not only important to choose stocks most likely to withstand economic downturns, but also to be ready to seize opportunities that may never arise again.
However, responding appropriately to stock market crashes, and quickly spotting the best opportunities during widespread panic, requires solid financial skills and a cool head. This can be challenging for beginners or those who simply don't have much free time to take full advantage of these opportunities to earn two or even three-figure gains.
Fortunately, artificial intelligence (AI) today offers a solution, enabling the design of completely objective trading strategies based on concrete and precise data. Investing.com has developed ProPicks, six thematic portfolios managed by a fusion of AI and human expertise, which have shown robust performance since their launch.
Since their real-life launch in October 2023 (as of end May), the portfolios have performed as follows:
- Tech Titans: +65.90% in 8 months
- Beat the S&P 500: +28.21% in 8 months
- Dominate the Dow Jones: +17,44% in 8 months
- Best Value Stocks: +34.31% in 8 months
- Midcap Winners: +21.56% in 8 months
Long-term backtesting, starting in January 2013 and ending in May 2024, also showed impressive performance:
- Tech Titans: +1768.6%
- Beat the S&P 500: +1052.6%
- Dominate the Dow Jones: +631.6%
- Best Value Stocks: +948.7%
- Midcap Winners: +593.3%
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