A intently adopted economist is warning {that a} main financial occasion final witnessed nearly a century in the past will seemingly rear its ugly head in 2025.
Henrik Zeberg tells his 140,700 followers on the social media platform X that he sees risk-on property comparable to shares and crypto going larger and better for the following few months.
Nonetheless, the economist predicts that the bullish situations will abruptly subside towards the top of the yr, simply as market individuals develop into extraordinarily exuberant.
“It’s possible you’ll not prefer it. It’s possible you’ll not perceive it.
However the bull market has an finish date – this yr! A blow-off prime!
First US markets will explode larger. Crypto and small caps will soar as we see a rotation from giant caps and overseas markets (outdoors the US).
Everyone will develop into euphoric and as soon as once more belief that the Fed can have our backs.
However a significant recession will set in on the finish of the yr.”
In line with Zeberg, the Fed will attempt to help the financial system by printing cash to stimulate development. However he says the Fed’s actions will solely delay an financial collapse that may ultimately give rise to stagflation – a interval of gradual financial development with climbing unemployment and excessive inflation.
“Fed will intervene – sure – however will solely create a bounce in markets, as they enter with financial stimulus when recession and deflation stare them within the eyes.
They are going to offset stagflation!
Consequence: largest recession and bear market since 1929 in two levels. First deflation, then bounce, later stagflation.”
In January 2023, Zeberg predicted that the inventory market would attain report highs earlier than witnessing a sudden crash. On the time, the S&P 500 was buying and selling at round 4,000 factors and Bitcoin was price near $20,000.
At time of writing, the S&P 500 is hovering at 5,321 factors and BTC is buying and selling at $70,150.
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