Economist Henrik Zeberg predicts a significant rally in stocks and crypto in the coming months, potentially lasting until the end of the year.
Bullish Sentiment
Zeberg believes investors will latch onto the following narratives to justify the rally:
- The “blow off top” is not over yet, indicating extreme gains in certain indices and crypto.
- Sentiment will become overwhelmingly bullish.
- AI and Fed liquidity will be cited as reasons for the continued market rise.
Market Implosion
However, Zeberg warns that both stocks and crypto will experience a sharp decline once the rally reaches its peak. He predicts:
- The US market top will occur in Q3/Q4 2024.
- A recession will set in during Q4 2024, triggering a rapid market decline.
Exuberance and Caution
Zeberg notes that market participants will become overly bullish as the S&P 500 approaches 6,150 points. However, he urges caution and reminds investors that excessive bullishness often precedes market tops.
Disclaimer:
The opinions expressed in this article are not investment advice. Investors should conduct thorough research before making any high-risk investments./p>
