Macro economist Henrik Zeberg says that the stock market is likely en route to one of its biggest crashes in history.
Zeberg tells his 109,300 Twitter followers that prior to his predicted crash, he’s expecting a massive blow-off top rally for equities in the coming months.
The economist shares a chart with his prediction for the iShares MSCI Emerging Index Fund, an exchange-traded fund (ETF) that aims to track an index of large and mid-cap emerging market equities. According to Zeberg, stocks are likely on their way up, while the dollar index (DXY), which pits the USD against a basket of foreign currencies, is likely on its way down.
After his predicted rally into 2024, Zeberg sees the equities markets collapsing as the dollar index goes on a parabolic surge.
“Let me be very clear:
We have the largest crash in equities/risk assets since 1929 coming! Deep Recession!
But not yet…
First the inconceivable and very hated blow-off top, which will pull investors in on the wrong side before crash.”
Zeberg also uses the DAX to support his thesis. The DAX is an index that consists of the top 40 German companies trading on the Frankfurt Stock Exchange.
Zeberg points out that the DAX just had its highest close ever for a monthly candle.
“DAX CLOSED this week at the highest level ever! Not all-time high but highest monthly close.
Do you really believe, DAX puts (an) all-time high in May 2023 – but (the) Nasdaq topped in November of 2021?
Or maybe….US markets will be last man standing going into the Recession (as usual).
THINK!!”
The macro economist has recently said that he believes Bitcoin (BTC), like the stock market, is in for blow-off rally as well. According to Zeberg, BTC could dip to as low as $25,200 before igniting a parabolic run.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/arleksey/Andy Chipus