“My impression is that investors are currently enjoying the double top of the most extreme speculative bubble in US financial history,” one expert wrote.
According to John Hussmanlegendary investor, stock prices reflect similarities to those seen in 1929 and 2021, and stated that there is a risk of a sharp decline in the stock market.
The renowned investor added that The market crashes in 2000 and 2008 could be an example of what could happen.
Hussman believes investors drove the market to all-time highs following the Fed’s latest policy update following confirmation of the prospects for rate cuts in 2024 and That enthusiasm is putting the market in a precarious position similar to that seen before the crash of 1929, or the market’s 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 peak of 1929. just before the market collapsed and caused the Dow Jones to fall 89%, from its peak to -trough.
“My impression is that investors are currently enjoying the double top of the most extreme speculative bubble in US financial history“Hussman wrote.
“We are currently not seeing favorable valuations or favorable internal factors in the market, while our overextension syndromes remain consistent with the risk of an abrupt air pocket, panic or collapse“he warned. “Even with the adaptations we have made in this cycle, current observable conditions encourage a strongly defensive posture here.”
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
