April 13, 2024

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One expert believes that Wall Street is in a bubble and will collapse soon

One expert believes that Wall Street is in a bubble and will collapse soon

“My impression is that investors are currently enjoying the double top of the most extreme speculative bubble in US financial history,” one expert wrote.

Courtesy: high level

according to John HousmanThe legendary investor, stock prices reflect similarities with those seen in 1929 and 2021, and stated that there is a risk of a sharp decline in the stock market.

The famous investor added that The market crashes of 2000 and 2008 could be an example of what could happen.

Hausman believes investors pushed the market to all-time highs following the Fed's latest policy update after emphasizing the prospects of an interest rate cut in 2024 and This enthusiasm puts the market in a risky situation similar to what we saw before the crash of 1929, or the market peak in 2021. Before the bear market the following year.

According to this expert. The ratio of non-financial market capitalization to gross value added is at its highest level since the stock market's peak in 1929. just before the market crashed and caused the Dow Jones Index to fall 89%, from its peak to its trough.

“My impression is that investors are currently enjoying the current situation The double top of the most extreme speculative bubble in US financial historyHossam wrote.

“We do not currently see favorable valuations or favorable internal factors in the market, whereas Our hyperextension syndromes remain consistent with the risk of a sudden air pocket, panic or collapse“Even with the adjustments we have made this session, the current observable conditions encourage a strong defensive stance here,” he warned.

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