Speaking to Michelle Makori, editor-in-chief of Kitco News, Dent said that risk assets will sell-off in waves, with the first wave seeing U.S. equity markets drop as much as 40% and the entire bear market phase totaling up to a loss of 90% for the S&P 500, not unlike what happened to tech stocks during the Dot Com Bubble bust of 1999.
“We will have the buy opportunity of a lifetime in around late 2023 or so,” he said.
“When people start selling those financial assets, wealth disappears and people panic more and that causes the recession.