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The COVID-19 Media and Creative Destruction with Pat Donohoe and Harry Dent

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Harry Dent, President of Dent Research

Jason Hartman starts the show with Pat Donohoe to examine how to go through media headlines during COVID-19. They look at how to benefit from creative destruction. In the interview segment of the show, Jason hosts economist Harry Dent. Dent gives us his ideas on demographics and where specific groups will be doing in regards to their housing situation. Jason and Harry examine differences between the spending behaviors of baby boomers and millennials.

Announcer 0:01
This show is produced by the Hartman media company. For more information and links to all our great podcasts, visit Hartman media.com.

Announcer 0:11
Welcome to the holistic survival show with Jason Hartman. The economic storm brewing around the world is set to spill into all aspects of our lives. Are you prepared? Where are you going to turn for the critical life skills necessary to survive and prosper? The holistic survival show is your family’s insurance for a better life. Jason will teach you to think independently to understand threats and how to create the ultimate action plan. sudden change or worst case scenario. You’ll be ready. Welcome to ballistic survival, your key resource for protecting the people, places and profits you care about in uncertain times. Ladies and gentlemen, your host Jason Hartman

Jason Hartman 1:00
I hope everybody is safe and well and managing their mental state during these quarantines and lock downs or shut downs or self discovery retreats, whatever you want to call it, and, and we’re going to dive into that a little bit in the intro portion today and then part two of today’s episode will be the final part of hairy dense, rather long interview that you can also see on our YouTube channel for a quick link to that bit.ly slash Jason YouTube. Pat Donahoe is here with me today for the intro portion. He is in the ultra elite, ultra expensive $85,000 a year, Tony Robbins Platinum partnership mastermind group and he has some inside information he’s going to share with you you get it today for free Pat, thank you so much for sharing these insightful things with us. You were just on a webinar with Tony and some of his really highlight Level advisors, right?

Pat Donohoe 2:02
Yeah, yeah. And he’s gonna be doing a bunch of podcasts as well around the same topic. Yeah, this is a web three and a half hour webinar that he did to his Platinum group that really caused me to think differently about what’s going on.

Jason Hartman 2:13
Well, what is going on? What are those folks saying?

Pat Donohoe 2:15
I’ll put it this way. You know, there’s value in multiple perspectives, right? Because everybody has data everybody has opinion and usually they’ll try to find the data that aligns with their opinion and perspective that’s a

Jason Hartman 2:26
that’s a prejudice we all have as humans.

Pat Donohoe 2:28
Yeah, no kidding. By when you really are looking at what’s going on, especially something as impactful as this this whole COVID-19 Coronavirus and, and what has been the response to it, you have to step back and find a new perspective, a different perspective, right to balance the dominant one. So I took a drive with my 15 year old daughter. couple days ago, we were talking about how the media makes money, how you know, different healthcare, whether it’s pharmaceutical companies are or other pieces of the medical industry, the healthcare industry, make money there. Interesting, right and I, you know, started get into asking her questions around like, Okay, well if they wanted to make more money, how would they do it? And it really came down to getting you know, more commercials being more influential and you know, leveraging certain events and circumstances right they get more people interested in you know, being healthier or doing something you know, as it relates to the medical field or pharmaceutical field taking drugs or medicine, etc. Then we get into the media, right? And what how the media makes money, and how they get more people to do business with them. And you know, we got into, you know, what’s more attractive? Is it the scary event, right? Or is it the, the uplifting, empowering event, just like it’s the scary event? Well,

Jason Hartman 3:42
that incident in the media business is if it bleeds, it leads, right. And that great Don Henley song called dirty laundry By the way, you know, I listened to that song. It’s number one, a great song but number two, it’s got fantastic lyrics. Don Henley who was in the Eagles The band, the song dirty laundry, explains the media business quite well. Okay? And and I say this is a member of the media. I’m obviously a reporter. I’m in the media business. That’s what we’re doing right now. But you got to understand the bias is obviously sensationalism, blowing things out of proportion. There’s no question that that’s what the media does and needs to do. It’s a battle for clicks. It’s a battle for attention, and the most sensational thing gets the most attention.

Pat Donohoe 4:26
And I think that the earthquake that really caused the tsunami of emotions and fear based psychology, right was the association with what percentage of the world you know the the mortality rate of this virus, which now has been completely disproven, but the damage has been done. And so the perspective you know, with what Tony brought up on the webinar is looking really at the response is it is the Coronavirus, bad is COVID-19 bad, right? It is it’s it’s killing people but then you look at the other statistics in relation to you know, the flu or car accidents suicides and, and those statistics are way worse. And but we’re not responding the way that we’re responding

Jason Hartman 5:06
to they’re there until the 19th. Okay, so on balance, though, there is quite a difference between this and the flu. You know, the traditional flu, we can spend an hour debunking that one or confirming it. This is more contagious. There are many aspects to that, but I get the message about the media. Okay, no question about that. That’s true. Go ahead.

Pat Donohoe 5:25
No, and it’s not necessarily comparing this as is it worse than the flu, it comes down to the statistics of those that are dying. Right. And you look at again, the statistics of those who died from the flu in the US 56 million people got the flu in 2018 80,000 deaths, right and right now, Corona virus, you have 12,000 13,000 deaths in the US and it’s gonna it’s gonna grow at the same time it comes down to you know, the response. And then looking at those, you know, there really are vulnerable majority of cases have been shown that the individual had at least One preexisting condition, and those that are dying, you know, typically you’ll have two to three. And that really comes down to any any type of ailment for somebody that is vulnerable or susceptible when they’re sick, and they have cancer or some other ailment, right, and then they get the flu and die from that. But that happens. That happens a lot. But if you look at those that are healthy, they’re getting this and recovering. I mean, the statistics are through the roof. So that’s the point, right? And I get there’s, you know, there’s differences. But as it relates to the percentages, it’s just again, it’s it’s a different perspective. And there’s probably pros and cons on both sides. You just have to be able to weigh both perspectives and come to your own opinion about what’s really going on.

Jason Hartman 6:42
Yeah. So what should people be doing? What’s the action step here?

Pat Donohoe 6:47
Well, like I said, you know, the earthquake of the craze and the fear based psychology that was created, can’t stop it. It’s already happened. It’s just going to continue to get worse the impact of the economy is going to be Significant rd is whether it’s the global supply chain being disrupted and the lack of supply of goods and services that we have here in the US, or it’s, you know, just regular jobs because people can’t go out and work and associate. I mean, I think the world is going to be different, you know, people are not going to go to the movies as often as they did, they’re not going to want to eat as often as they did. They’re not going to travel as often as

Jason Hartman 7:22
long term thing. This the mentality of people. And Pat, one of the things I’ve predicted, as you know, is that people are going to leave high density living environments, and they are going to move to low density living environments. And I think the memory of this is going to be with us for a long, long time. I don’t think people want to be trapped in elevators. I just think they’re going to be I think elevators are going to be the new thing that people are scared of.

Pat Donohoe 7:48
It’d be association with people. Yeah, I think everything’s gonna change at least for a generation, the short term, maybe a year a couple years, but I was telling you before we started recording that my mom, you know, had polio Yeah. And she is one of our legs is smaller and shorter than the other and, and she’s dealt with that since she was really young. And people were afraid of her right? People were afraid they wouldn’t go near her. Right? It was one of those things where it was unfounded in a sense, at the same time, that’s that’s the psychology of people. So if you look at that as one of the dominance right, the first domino is the earthquake, right and now the tidal wave is coming. The second Domino is, you know, the economy. Alright. The third Domino is how are people going to adapt based on their experience? And then the fourth Domino, how is that going to impact markets? I was I could impact school, how’s that gonna impact business? Right, you have to look at where those dominoes are, and then make assumptions on where the opportunity is, I think a lot of businesses are gonna gonna be out of business, right? And plus, with all the stimulus money that’s being injected into the economy, right, it’s gonna go to wasteful things as well. So you got to be paying attention to what those fourth and fifth dominoes are, and that’s where the opportunities are going to be

Jason Hartman 8:56
right and remember, the stimulus creates inflation. pressure, obviously, you know, it takes a while for that to work its way through the system. One of the things is the amount of money that’s being injected in Britain. It’s absolutely insane. It’s like I’ve said, we are witnessing the biggest money printing extravaganza in world history.

Pat Donohoe 9:15
I mean, it’s not just the US every all the other central banks around the world are following

Jason Hartman 9:18
suit, right. And by the way, that’s one of the problems of the myopic doom and gloom ORS, the Gora clan, Peter Schiff, Jim Rickards, all of these people out there even to an extent our guest, Harry dent, okay, is that they, they’re usually looking at the US and they say what the US is doing is so bad, all this money, all this debt, blah, blah, blah, but compared to what I mean, the US is the best house in a crappy neighborhood. Okay? It’s and it has the reserve currency and the military to keep it that way. This is what people don’t understand. They just keep looking at the math and there’s way more to it than math. End. We’re also obviously, in very much uncharted territory. And what that means is that, you know, everybody says, Oh, we have so much debt, we have so much debt compared to the past. But the thing we don’t know, is how much debt we can handle. I remember when I interviewed this Berkeley Professor on my show, who was talking about overpopulation, and he was on, by the way, the holistic survival show, not the creating wealth show, okay. And he was talking about overpopulation and how the world’s going to end and everything’s terrible, and pollution is terrible, and all that stuff. And you know, listen, I don’t disagree with that on its face. But the problem is, I said to him, I said, How do you know how many people are too many? And he was stumped. I stumped him with a question I said, Is 7 billion people too many. You seem to be saying that. How about back in the 60s when the cover of Time magazine in the early 60s, talked about how we had I think it was 2 billion People and they said we had this massive overpopulation problem. How about back 200 years ago, when Malthus talked about the Malthusian economics postulate that, you know, the world is going to run out of food because we’re overpopulated and this was 200 years ago. Okay. You know, look, we don’t know how much debt is too much. We don’t know. I mean, look at Japan, we have we have debt to GDP ratio of somewhere around in the highest 60% 70% range, but Japan has 229%. I know you can say, Well, look at Japan, it’s not doing very well. Okay, fine. That’s true. But Japan has other problems like demographic problems. We don’t know the answer. We don’t know how much debt is too much. We don’t know how much debt we can handle. And especially when we have the reserve currency, it seems like we can get away with this little scheme for quite a while longer. And

Harry Dent 11:50
one of the things you can it’s the anomaly which is humanity, right humanity is was also it solves problems. Yeah, right. It looks at its environment. All right, and it finds opportunities, it makes things more efficient. And I think there’s a tremendous revolution in so many different sectors, based on all this, which you can’t put you can’t predict, right? Right.

Harry Dent 12:10
This is what you could predict that humanity is gonna rise rise to the occasion. That’s about it. You don’t know exactly what they’re gonna do, right?

Jason Hartman 12:16
Yeah, they’ll do something. But this kind of thing, Pat, is when we talk about Joseph Schumpeter, you know, who’s the economist that postulated the idea of creative destruction, okay. And creative destruction happens naturally in a capitalist marketplace, which is great. And what it says is that good ideas, destroy bad ideas. They crowd them out of the market, okay, which is a good thing. But what happens now is that you have creative destruction happening a lot faster, because we are forced, because Necessity is the mother of invention. And we were all forced into a creative destruction situation with this crisis, and a lot A lot of goods gonna come out of it. You know, it’s it’s not all bad. There’s definitely some really good things. Yeah,

Harry Dent 13:04
one of the blogs that I try to follow and read every day is is Peter Diamandis and he’s tracking a lot of the innovation that’s occurring because of always and it’s revolutionary. I mean, it’s so inspiring to see what people are doing to respond to this. There’s, there’s good there. And like you said, it’s these are the environments in which people thrive. And unfortunately, you know, new ideas have to replace the bad ideas, which may have once been good ideas, but that’s just the nature of evolution in nature of progress.

Jason Hartman 13:34
Yeah, absolutely. One other thing I wanted to say with one of your earlier comments, Pat, and we’ll wrap it up and get to our part three of Harry dent and get to that today, but is the thing that’s happening and how the government’s are reacting very differently in the US versus Europe. And I heard a commentator talking about this and it’s kind of interesting. I’d love to get your take on it. Many European companies aren’t laying people off, okay? Because Because the government is paying the companies to not lay people off, and now we’re doing that here through the SBA to some extent, by the way we have, we’re running seven days a week now on the show. And so this weekend, I think we’re going to play the episode with one of my CPA friends that can help you get an SBA loan and get some government aid and take advantage of these bailouts. And so that’s coming up this weekend look for that episode. But what she was pointing out is she said, Look, when you have to restart the economy, when we all get back to work, when you don’t lay people off, you can restart a lot more quickly. And she’s right about that. But what she doesn’t say is also interesting. She doesn’t say that by laying people off like we’re doing in the US, which seems very sad on its face. When all the businesses start back up. They got to go find new workers, right. But remember something they learned a lesson. They, you know, maybe some of the employees weren’t that great. Maybe the fit wasn’t that great. Maybe the employer thought they could get a better employee, maybe the employee thought they can get a better job that utilize their talents better. That is creative destruction. Okay. And it’s not all bad. Yes, it’s a little more chaotic. And it takes a little more time. But it also creates some benefits in the marketplace. Because employers will come back leaner, and meaner and better at their trade, and people sitting at home. Hopefully, most of them are doing something productive. They’re learning how to start a home based business. They’re learning a new skill. Maybe they were an Uber driver, but now they’re learning programming, you know, online. I mean, there’s all kinds of stuff happening, that is good, creative destruction that is forced upon us. And that’s when we act when we’re forced. When things are urgent

Harry Dent 15:54
thoughts, that’s part of the process. There’s gonna be so much good that comes from this and in the long run in the short run, it gets a little Painful Yeah,

Jason Hartman 16:00
it’s definitely painful. Not a little, a lot painful. But

Harry Dent 16:03
the greatest lessons are learning one of the greatest growth takes place both with businesses being able to be more efficient. And then also individuals being able to really recognize that they can be better they can learn more they can be have more impact on on a business and get a higher paying job. I mean, this is kind of Yeah, you’re getting punched, proverbially punched in the face a few times and you’re going to be stronger because of it. Yeah,

Jason Hartman 16:26
absolutely. that’s a that’s a great point. Pat, give out your website, tell people where they can find you.

Harry Dent 16:31
The will standard com so the podcast website, the wealth standard.com. That’s the best place it has all the links in there to everything else.

Jason Hartman 16:37
Excellent. And if you need to reach us, of course, Jason hartman.com or call us at one 800 Hartman. And let’s go to part two of our show and talk to Harry dent. I want to ask you about maybe just a couple other things we can many, many years ago, I think back into the mid or late 90s you made an interesting prediction that I’ve always thought About since I’ve been following you for, what, 2025 years now? Yeah, that prediction was that the baby boomers would start to sell off their big mcmansions or just big family houses and become empty nesters. And, interestingly, that has come through I think you were maybe a few years early on that prediction. Possibly. They are And surprisingly, a lot of them are quite content to be renters and just not me. And that’s that’s a surprise to see baby boomers move into the rental market and mass like we’ve seen it right.

Harry Dent 17:32
It’s a surprise. It’s never the baby boomers change everything. What basically happened in a nutshell, Jason these the baby boomers grew up in good times, unlike the Bob Hope generation before them, you know, Great Depression and World War Two and they were entering the workforce and starting their career. Like the millennials today, similar thing. They didn’t save, and then they’ve watched in their house go up, and then there’s the housing bubble, and their stocks go up and they’re like, Well, why don’t we should say, well, we’ll just when we retire, we’ll be worth so much. But what’s happened now Their mcmansions have bubbled up and they’re realizing oh my gosh, with economy slowing since 2008 and being more questionable and seeing bubbles birthday saying, gosh, we need assets to retire on. And they’re coming to the conclusion. Unlike most people who stay in their house or downsize to a smaller, they’re selling their McMansion using those huge bubble profits, which is a very smart thing to do, by the way by accident to create an investment plan they catch up with their savings. And then that means though, they need those profits so they are more and more baby boomers are actually saying we’re gonna rent in retirement. So what do they want to rent they want to rent a nice great apartment building or they want to rent a more affordable, smaller, what would be a starter home to millennials or to the past boom, they’re going to downsize the the millennials are moving up into starter homes. The retiring baby boomers are not going to go from a McMansion to another imagine they’re going to go to a smaller home or a nice apartment building. So that makes the room rental market, which actually would be peaking now, except for a downturn will always boost rental markets. This market the last I just did a presentation in Dallas for a rental real estate conference. And they say, no baby boomers is going to cause this set of rental real estate to continue to grow for the next couple decades. This has never happened before. And it’s a good trend for everybody.

Jason Hartman 19:25
Yeah, that’s so interesting how that’s changed. You know, I think there’s another interesting element to kind of related things. Number one, not many people have, you know, they talk about how Millennials are under so much pressure, they’ve got student loan debt, they basically have a mortgage, they just didn’t get a house included with it. It’s a crummy deal. You know, they’ve they originally moved into kind of a very anemic job market that improved significantly, so they’re doing a little better there, but I don’t know it’s a really different kind of generation. And the thing that I haven’t heard anyone talk much about Harry, is that those Millennials are going to be inheriting money from their aging parents. Now granted, people could if they take care of themselves live a lot longer. But how do you analyze the transfer of wealth through inheritance? And are the millennials overall in good shape or bad shape? Just in a like a soundbite? What are your thoughts about that?

Harry Dent 20:24
Well, first of all, this inheritance is not going to happen anytime soon that how people tend to inherit money in their late 50s, early 60s from their parents who are dying in their late 70s and 80s. So so that’s that millennials are not even the peak, not even enter the workforce yet. It’s the early millennials that are starting to buy houses and spend money and they haven’t even reached the peak and spending at 47. They’re at about 42 to 43. Today, I can already tell they’re doing everything a year later. That’s why I say they’re gonna pick it 47 they’re not even the early millennials aren’t even at 47 to confirm that yet. So they’re no We’re near inheriting money. They have less financial assets and wealth as their age than baby boomers did, because they’ve seen because they’ve seen a major downturn in stocks and a major downturn. I mean, you gotta realize baby boomers never saw a major downturn when they were their age. And never thought real estate would always go up and never correct. Well, Millennials don’t think that way after seeing real estate go down 34% on average, and in the bubbling markets like Las Vegas, Phoenix and Miami and California 60% or more. So millennials do think differently, more like the Bob Hope generation that started entering the workforce in the 30s. And then on top of that, if that wasn’t enough to slap your ass, oh, how about World War Two. So Millennials are going to be different than baby boomers. They’re not as advantageous now but what I tell millennials what I’m talking about this reset and home prices cost a living and finance antral assets is going to allow millennials when they need to most in future, invest in stocks, again, invest in real estate again and make money. If you buy real estate now, especially in these bubbles, you buy these bubble stocks, you’re not going to make any money for decades, and you’re going to lose money in a downturn. So this downturn, we talked about taking money from the top 20%. And shifting it more to the everyday household. We’re also who’s going to lose the most money. These baby boomers own these financial assets, from housing to stocks, younger people don’t have as much of that it’s going to shift money from the aging generation to the younger generation and going after this crash. Real estate is going to be cheaper, borrowing is going to be cheaper. And then you’re going to be able to buy stocks and say, Oh, I could actually make 10% a year on these stocks. Again, you have no chance of that buying stocks at these levels. And there’s very clear models that show that actually the best model shows that we buy stocks in this time. does not take into account my demographics and downturn or anything. If you just buy stocks at these valuations. Today, on large on stock, you’re gonna lose 2% a year for the next 2012 years compound. Oh, that’s painful,

Jason Hartman 23:14
and that’s without a downturn. Yeah, that is bad. And there’s gonna be downturns, obviously, yeah. Wow. Well, okay, so just to get clear, what does Harry dent like you like cheap rental real estate? Thankfully, I like that too. I know you like that you don’t like real estate in high flying bubble markets. cyclical markets. I don’t like that either. So we agree there. Is there any other asset class? I mean, you’re not a gold bug. You’ve predicted gold cookie, you know, really going down quite a bit to 750 and maybe to 250 it hasn’t happened. But

Harry Dent 23:45
no, it did help. My client raised that from 700 to 1000. But it’s still Yes, it’s gonna go it’s in a bear market rally. Now. I think it’ll settle somewhere between 700 and 1008 will not fall as much as other commodities will not fall as much as stocks but it is not Your safe haven in a deflationary economy a de leveraging economy. It was the safe haven in the 1970s inflationary bust.

Jason Hartman 24:09
Okay, so what do you like? Is there anything else what

Harry Dent 24:13
Yes, I like high quality bond. I like the 10 and 30 year US Treasury bonds. They’re even though they’re low rates, they’re going to go lower the money when everything else falls real high in real estate, junk bonds, stocks and commodities, people going to shift money in the safest stuff, even though they get low yield and those yields go lower, and the Great Depression, the triple A corporates, and the treasury bonds long term did the best they actually doubled in value over that decade. They don’t lead not only held the value like cash, they increased in value 1015 20% during the downturn, so that I like that I like apartment, real estate investment trust around residential, not commercial rentals, residential apartments and medical facilities and you You can find those. Those Hold up. The medical facilities have the best demographics and they’re recession proof because people don’t say, Oh, just because the economy’s down, I’m not gonna, you know, go to the hospital when I break my leg. So sort of thing. So I like those. And basically there are no stock sectors. Yes, utilities and consumer staples will do better than consumer cyclicals or growth stocks, but still, you know, everything goes down. Jason I did this decade ago. I looked at every stock sector in the 1930s. There was nothing that held his value and went up in that crash and would have been a good thing. Now when they crash Oh, then then stocks, particularly emerging countries, I tell people in this crash, you want to buy the again the same type of stuff that starter homes and ultimately the trade up homes and they’re going to be the biggest bargains, the McMansion by then that the millennial is going to want and you want to buy Hey, hang on.

Jason Hartman 26:00
Now let’s talk about the mcmansions. Again, I just feel and this is just kind of a, you know, anecdotal, okay? I just don’t see a market for those mcmansions after the baby boomers let go of them, because the millennials, they just don’t strike me as the type that would even want a house like that, even if it were given to them. Like if they inherited that house, they just sell it, they would sell it. Yeah, I don’t think so. So I think those kinds of properties are really, they’re they’re a conspicuous consumption. They they’re, they’re not environmentally friendly. You know, there’s just nothing about them that I think millennials would be attracted to. Am I right about that? Just to kind of say I’m talking psychographics here, right. But there’s another side to it. And so

Harry Dent 26:50
yes, you’re right. I Millennials are buying later because of caution and student loans and tighter lending sensitive family formation and some of them When they finally do buy in their mid 30s just go ahead and buy the larger home but you’re right they’re not as likely to buy that six bedroom five 6000 square foot on a golf course somewhere sort of thing. Okay, and that’s going to come a little later anyway in their cycle but what happens is these are going to be the mcmansions that the smaller homes that they’re buying and that the the we just talked about the baby boomers and retirement are trading down to when they sell them imagine those are going to hold up much better in the downturn they’re going to come out much better the mcmansions are going to be a bargain so so when it comes down to yeah I’m not that conspicuous up but I could buy a 4000 square foot house for only 10% more right

Jason Hartman 27:45
that’s gonna be sort of

Harry Dent 27:47
I could rent out part of it on Airbnb right because

Jason Hartman 27:50
I’m I’m into the sharing economy and a modern and I like having a meeting new people. It’s better than couchsurfing. Yeah.

Harry Dent 27:57
Now, let me give you one better than this and I just spoke For this guy in the last year, there’s a guy teaching people how to take large suburban mcmansions and turn them into a non nursing home assisted living facility with limited, you know, medical stuff and all this other stuff, and make two to three times on those with less time to carry. Harry, I’m so glad you brought that up. I think that assisted living thing is totally overbuilt. I think it’s over supplied, don’t they? It is today. Let me tell you why. This is why you look at demographics. People think oh, the baby boomers already nursing Oh, no, they’re not there. They’re,

Jason Hartman 28:37
they’re aging or

Harry Dent 28:40
are fading because the Bob Hope generation is dying off. Baby Boomers, I do my normal lag for 84 Peak spending on nursing homes and assisted living. For the baby boom, it’s just bottoming in 2018 19 and we’ll turn straight up for 26 shares and I think 2042 or 45. I remember correctly. And they will never have enough of these things. Harry, I say the boomers will do

Jason Hartman 29:05
I disagree for a couple of reasons. Number one, we’ve been talking about the graying of America since the 80s. That it has been built in there, so Okay, hang on, let me just finish

Harry Dent 29:19
grade 60 I’m talking nursing home or late 70s I get it. I get it wasn’t even there. Harry. Harry. Okay.

Jason Hartman 29:28
So on. So yes, that’s that’s built in. I understand the 84 year lag, I totally get it. But here’s the thing. Technology is the wild card in there. It’s allowed people to age in place and people want to age in place. They don’t want to go to an institution. And you know, the idea that you can just have your aging parent, wear an Apple Watch, and it will notify you if they fall if their heart rate is too low. If their blood not the blood pressure yet, it’ll do their EKG that Old commercial I’ve fallen and I can’t get up is way high tech now, there are all sorts of sensors that can be placed around.

Harry Dent 30:08
You just talk yourself out what is less institutional in a six bedroom home in a quiet neighborhood, maybe a half a mile from your kids and their and your grandkids.

Jason Hartman 30:18
I agree that they’re going to sell the McMansion because

Harry Dent 30:20
the technology makes that make no no not sell it. You can take these mcmansions which are closer to it and buy them cheap and turn them well and use this you’re right the technology allows you to put sensors and and things that make something like that more sophisticated without having to be a big bureaucrat against the

Jason Hartman 30:38
Fair enough, but they don’t. They don’t have to have any. They don’t have to have any roommates at all. They can just be in their own place. That’s what I’m getting. They don’t need an assistant fair. They can just be in their own apartment or whatever. I will say Oh,

Harry Dent 30:53
it’s a pain in the ass to keep granny in your home and some people do it. Some people don’t. But even if my mother hadn’t

Jason Hartman 30:59
They’re almost saying Gladiator Oh, he

Harry Dent 31:01
had a point it was unmanageable. And if I’m an older person and we’ve we’re we have a really good friend is 91 years old just down the street from us. The mother of some crypto friends we have her in Puerto Rico. She likes being in the nursing home. She’s She’s a block from her daughter, and she’s a half a mile from us who are best for her summer best friend. She’s hits with other people, she can play bridge and stuff. Other people like her and do stuff, right. Why would you want to be one older person with a bunch of younger people living with it don’t have a lifestyle, anything like you? Yeah, so just saying it doesn’t take everybody You’re right. More people will age in home and that’s a good thing. But if you can age in a smaller, more technologically sophisticated home, not far from your relatives, but still have your own thing be taken care of and not be a burden. I I know older people that don’t Specifically don’t want to be a burden on their kids and grandkids by living in the house. Oh, when they get more Listen, listen, listen, I agree. I’m not saying they’re gonna live with their parents. That’s more of an Asian thing that there’s intergenerational housing. You have a little bit of that in the US but not that much. I’m just saying they can agent plates, they can still have their own home for much longer than that. It’s going to end up with one lady, no man that see, by the time we get 10 to one women, man, I know and you want to live as a lady by yourself in an apartment where you feel vulnerable with nobody and knows very little technological sophistication that you can afford in a one bedroom apartment, rather than being in something that’s a little more I’m just saying, I don’t know, it won’t be for everybody. But I do see things changing. And what she said about technological sophistication is important. We had my wife had her mother and her aunt, which was like our second mother both be in nursing homes and the service was not good.

Jason Hartman 32:58
Yeah, right. Yeah. There’s all kinds of I

Harry Dent 33:03
didn’t want to be there. Yeah, right. It was $10,000 a month. And so this guy is showing people, you get a few clients like that, and maybe you charge them 5000 a month, and you’re making 20 30,000 a month off a McMansion that if you rent it out might be 5000 a rent.

Jason Hartman 33:19
Whoa, well just remember it’s got all you got all sorts of insurance issues and care issues and liability and

Harry Dent 33:25
grumpy old. Yeah.

Jason Hartman 33:29
And, and intrusive, young people children and telling you what to do and, you know, filing complaints against you and it’s nothing is simple. Okay. That’s the point of life. Okay. Nothing is as simple as that looks. Okay, Harry. Let’s just wrap up this whole macro discussion we’ve had with anything you want. Let’s wrap it up. Okay. We’ve talked about a lot of stuff today.

Harry Dent 33:52
Well, again, I mean, again, I get nothing but hated and scorn because and I tell people Okay, wait a minute. I’ve called up perma bear now this is ridiculous I and you know this was the most but I was the only guy that saw the great boom ahead. You were you were totally bullish through

Jason Hartman 34:09
2010.

Harry Dent 34:10
Well, me and Templeton Templeton saw it too but you saw it because of globalization and emerging market urbanization. I saw it in the developed countries greatest boom in history when people thought the US and Europe was dead. And now I’m saying look, we’ve had that great boom and now we’ve had this unbelievable money printing scheme. Oh, we’re not going to D leverage debt. We’re just going to cover it over with free money. Oh, does that sound like that would work something for nothing? wave a magic wand prints $16 trillion and all your problems going we The reason we’re gonna have another big downturn we have more debt than we had before the great financial says we didn’t D leverage debt, some consumer debt, some financial debt. We have way more corporate debt now and a lot of it buying their own stupid stocks. And we have massively more government debt. So so we We still have to get the debt down to reality, financial assets down to reality cost a living back down to reality or these young people, the millennials and millennials, they’re sentenced to a poor standard of living like the Japanese younger people have today. That’s what I was alluding to earlier about. Japanese young people don’t want to have sex date. Don’t think about getting married unless you you know, marrying somebody financially independent, because you can’t afford to have a kid. They don’t have the benefits their parents have the parents kept that in Japan, young people have this zero coma economy, even with three times the stimulus we’ve been put out comparable, and they’re going nowhere. If we don’t rebalances that Jason and go through what you always do after a debt bubble and financialized by having these financial assets come down, people lose money, but it may clears the way for the next young generation. We are going to be like Japan in an endless coma economy even when demographics are good and the countries are so We need to go through this. I’m telling people all you got you can’t control all of this, all you do is get out of the way that like we were saying today, both of it, you’re going to own real estate own of more affordable, less bubbly real estate that you can rent and there’ll be even bigger demand for rent. In these kind of aging baby boomers, smaller houses, Millennials buying smaller houses, the medical sectors and apartment buildings. That’s what’s gonna hold up everything else. Get out of the way. Hey, you may want to keep your primary home and live it until you die but certainly do use your vacation home that much. I’m living in a condo in Puerto Rico that is a vacation home. It’s expensive on the beach, vacation home for wealthy Puerto Ricans and some gringos and they’re using it four to six weeks a year sell that if you live in your vacation home half you make maybe you keep it but but do you really want to keep the vacation homes and then mcmansions will fall the most all stocks will fall. The most Probably the tech stocks will fall the most China you know, in emerging countries always get hit the hardest. So just get out of the way. at these levels the model say you’re not going to make much money long term and we get out of the way and then if I’m right even half right, and these things crash down, then you can rebuy, financial assets, and then sectors of real estate and feel confident about it. But people think, Oh, you know, you know, you just sit through downturns. Yes, you sit the normal downturns. You don’t sit through that 90. I mean, go back and look at that 90 year chart. Every 90 years, we see these super bubbles crash, and we don’t have recessions. We have depressions you don’t sit through financial assets and depressions except the safest ones. High quality bonds. affordable rental real estate. That’s pretty much it.

Jason Hartman 37:51
Yeah, Harry. The one thing I would definitely take away from our discussion today is that financial assets in other words, the Wall Street Economy versus real assets, the main street economy, the real economy, financial assets are just far more risky. I would Yeah, I would, I would venture to say that all the time, good stuff. Here, we give out your website. Okay, Harry dent.com. As that’s where we learn more about us and get on our free newsletter, good stuff. Harry dent, thank you so much for joining us again. Thank you, Jason. Thank you so much for listening. Please be sure to subscribe so that you don’t miss any episodes. Be sure to check out the show’s specific website and our general website Hartman. Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional and we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.