Harry Dent, the founder of HS Dent investment firm, has issued a warning that the worst market crash in history is coming in 2026.
In a discussion hosted by David Lin on Monday, December 22, the market expert predicted that the now nearly 17-year-old market bubble would burst, bringing stocks down 90% in what he described as the worst market conditions since the Great Depression.
Most notably, the analysis rejects the idea that the speculative excess is limited to artificial intelligence (AI), which has now become one of the key talking points when it comes to market valuation. Instead, Dent claims that equities, real estate, and digital assets are all trapped in a debt-fueled super-bubble.
“But this bubble is different because it started in 2009 right out of the gates, didn’t let a recession finish all cleansing of debt and stuff and took right off, and just kept going,” Dent said.
The U.S. economist traced the origins of the current cycle back to the aftermath of the 2008 financial crisis, arguing that policymakers prevented a natural economic reset with their monetary intervention. Specifically, the global economy should have experienced a prolonged downturn, as it did in the 1930s, but aggressive deficit spending sped up the expansion.
Bitcoin as an indicator of a market crash
The discussion touched on Bitcoin (BTC) as the clearest sign of a broader market downturn. Namely, “digital gold” has fallen roughly 30% from its recent peak, a move the analyst sees as consistent with previous cycle tops.
“Bitcoin is the best leading indicator. Nvidia is the second we have,” he said.
Historically, Dent noted, Bitcoin has never reached new highs following the peak year of its four-year cycle. In each instance, it has gone on to decline by at least 77% in the following year.
Based on this pattern, he projects the Bitcoin price could fall to $30,000 by the end of 2026, with a potential downside as low as $15,600, a figure not seen since 2022.
‘Bubbles burst, and this one is off the charts’
While acknowledging the transformative potential of AI, Dent warned that AI stocks do exhibit the classic characteristics of late-stage bubble behavior. He compared today’s market leaders, such as Nvidia (NASDAQ: NVDA), to Cisco (NASDAQ: CSCO) during the final phase of the dot-com boom, when critical infrastructure and breakthrough technologies became the focal point of speculative excess.
Looking ahead, Dent said early 2026, particularly January, will be crucial in determining whether the bubble finally bursts or continues for another year. This is because strong performance in the first week and month of January has historically signaled a positive year for equities. A weak January, however, would reinforce his bearish outlook.
Dent emphasized that every major speculative bubble has ended with dramatic losses, and he sees no exception this time.
“Bubbles burst, and this one is off the charts,” he said.
The only asset that is going to survive, Dent concluded, is Treasury bonds, “because they can print money to pay them off.” In this regard, the finance author appears to disagree with some other leading economists, including Peter Schiff, who has recently predicted an unprecedented dollar crash coming our way in 2026.
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