Dunt warns: Could 2026 see a stock market breakdown and a 90% decline become a reality?

Economist Harry Dunt recently issued a rather controversial market assessment. According to the analysis by the founder of HS Dent Investment, the most severe asset liquidation since the Great Depression is approaching — he predicts 2026 will be a turning point in history.

**Bubble accumulation has reached a critical point, with all three major asset classes under pressure**

Dunt's core argument is: the current debt-driven "super bubble" has lasted nearly 17 years, with stocks, real estate, and digital assets all severely overvalued. Once the bubble bursts, the stock market could face a 90% decline — this would be the most brutal bear market environment since the Great Depression.

**The first week of January becomes a "touchstone"**

Interestingly, Dunt views January 2026 — especially the first two weeks of January — as a key window to determine whether the bubble will finally burst. His logic is based on historical experience: the stock market's performance in the first week of January and the overall January often predict the trend for the entire year. If January starts strong, it may mean the bubble will continue for another year; conversely, it would confirm his bearish outlook on a market crash.

**U.S. Treasuries as a "safe haven"?**

In asset allocation advice, Dunt believes the only potentially safe haven during the crisis is U.S. Treasuries — the reason is simple: the Federal Reserve controls the power to print money. However, this view is in stark contrast to that of another well-known economist, Peter Schiff. Schiff predicts that in 2026, the dollar will face an unprecedented collapse risk, which means the safety of dollar assets is itself questionable.

The disagreement between the two economists reflects a deep split in market expectations for 2026 — whether a stock market crash will dominate, or the dollar will depreciate first, this question may only be answered next year.