Henrik Zeberg, a macroeconomist, has reiterated his forecast of an impending recession, citing continued strong performance in key market sectors.
In an interview with Soar Financially on July 7, Zeberg pointed to the S&P 500 index, suggesting it may reach new highs before facing its worst crash since 1929.
Back in January, Zeberg had forecasted the index would climb to 6,100, and recent months have seen significant gains, with the index surpassing 5,500. He highlighted early signs of economic decline in July, noting the business cycle’s gradual downturn and ongoing recession indicators.
Despite recent market spikes, Zeberg believes the peak is yet to come, anticipating a substantial market correction ahead. He remains steadfast in his prediction of a recession by year-end, potentially peaking in September or October.
While acknowledging the economy’s resilience, Zeberg warns of an inevitable downturn and advises caution amid uncertainties over Federal Reserve policies.
Market analysts await the Fed’s next moves, speculating on how interest rate decisions could influence the economy’s trajectory and potentially signal an impending recession, according to recent analyses.
The Bank of Japan (BOJ) has opted to keep interest rates steady at 0.25%, leading to a sharp rise in the Nikkei index, which jumped over 700 points.
On September 18, the US Federal Reserve made a notable move by cutting interest rates by 50 basis points, marking the start of a new easing cycle.
The Federal Reserve’s recent 50 basis point rate cut left experts divided.
After the long-awaited rate cut by the Federal Reserve, the crypto market started showing signs of recovery.