Get the scoop on finance - sign up for mobile alerts
Financeflux
| On
May 22, 2024

Economist Henrik Zeberg Issues Dire Warning, Says Fed Cannot Stop Major Recession at End of 2024

By Henry Kanapi

A closely followed economist is warning that a major economic event last witnessed almost a century ago will likely rear its ugly head in 2025.

Henrik Zeberg tells his 140,700 followers on the social media platform X that he sees risk-on assets such as stocks and crypto going higher and higher for the next few months.

ADVERTISEMENT

However, the economist predicts that the bullish conditions will abruptly subside toward the end of the year, just as market participants become extremely exuberant.

“You may not like it. You may not understand it.

But the bull market has an end date – this year! A blow-off top!

First US markets will explode higher. Crypto and small caps will soar as we see a rotation from large caps and foreign markets (outside the US).

ADVERTISEMENT

Everybody will become euphoric and once again trust that the Fed will have our backs.

But a major recession will set in at the end of the year.” 

According to Zeberg, the Fed will try to support the economy by printing money to stimulate growth. But he says the Fed’s actions will only delay an economic collapse that will eventually give rise to stagflation – a period of slow economic growth with climbing unemployment and high inflation.

“Fed will intervene – yes – but will only create a bounce in markets, as they enter with monetary stimulus when recession and deflation stare them in the eyes.

They will offset stagflation!

ADVERTISEMENT

Consequence: largest recession and bear market since 1929 in two stages. First deflation, then bounce, later stagflation.”

In January 2023, Zeberg predicted that the stock market would reach record highs before witnessing a sudden crash. At the time, the S&P 500 was trading at around 4,000 points and Bitcoin was worth close to $20,000.

At time of writing, the S&P 500 is hovering at 5,321 points and BTC is trading at $70,150.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DALLE3