According to the economist, this year may experience the biggest financial downturn in history. Accordingly, investors will take “the biggest risk of their lives” if they don't sell now, before the market crashes completely.
Dent believes that the sell-off of risky assets is likely to occur in waves, with the first wave driving the US stock markets down to 40% and the overall bearish phase leading to a 90% total loss for the S&P 500; this is unlike what happened to tech stocks during the 1999 dot-com bubble.
“This will be the biggest crash and biggest recession in your life, and most of it is likely to happen in 2022,” Dent said. "The overall drop will be between 80% and 90%."
The collapse will come mainly from the fact that financial assets are in what he calls "the biggest bubble in history", which, in his words, is caused by over-stimulation of the economy by the US Federal Reserve.