Analyst Predicts US Stock Market Crash Surpassing 2008 Magnitude

• Uncertain US Stock Market Predicted to Experience Crash Greater Than 2008
• Macroeconomist Predicts Major US Stock Market Crash
• Major Recession Will Set In
• Increased Interest Payments and Housing Affordability
• Jamie Dimon Predicts US Stock Market Bust in 2024 and 2025

Uncertain US Stock Market Predicted to Experience Crash Greater Than 2008

The United States stock market is anticipated to be heading towards troubled waters due to various factors. These include the ongoing conflict between Ukraine and Russia, the Israel-Palestine crisis, and potential disruption in Red Sea trade. These circumstances are speculated to negatively affect the economy in 2024. Macroeconomist Henrik Zeberg has issued a warning of possibly experiencing a stock market crash more severe than the 2008 financial crisis in the foreseeable future.

Macroeconomist Predicts Major US Stock Market Crash

Zeberg has pointed out various alarming indicators that suggest that the US economy has been treading on thin ice since last year. Notably, Warren Buffet's recent purchase of $82 million worth of shares in the U.S. stock market has been highlighted. According to Zeberg, several factors could lead to a major downturn in the US stock market. These include Yield inversion, increased interest rates for homebuyers, consumer mortgage and debt increment, and decreased demand for inventories.

Major Recession Will Set In

Zeberg's bleak prediction is based on his analysis of the Business Cycle Model, a tool that has accurately predicted recessions for over 80 years. He explained that the leading indicators are falling beneath their equilibrium line, signifying an approaching recession. He further compares the current situation to the Titanic, which, having already hit the iceberg, is doomed to sink.

Increased Interest Payments and Housing Affordability

As interest payments rise, housing affordability is expected to drop dramatically. Zeberg warned that we are currently below the levels before the financial crisis. While the watershed moment has not arrived yet, it is anticipated to come when the consumer loses his job. When the unemployment situation worsens, many people are expected to lose their homes as default rates skyrocket.

Jamie Dimon Predicts US Stock Market Bust in 2024 and 2025

In addition to Zeberg's prediction, Jamie Dimon, the CEO of JP Morgan, projected that the US stock market might plummet in 2024 and 2025. His reasons for such a forecast are yet to be detailed.

Edited by Jonathan Stoker