Economists and investors predict a new Great Depression in the US
A shock to the stock exchanges and a collapse of the American stock market can happen at any moment. Currently, the United States is on the verge of a new Great Depression. Several well-known economists and investors reported this to Business Insider.
The head of Hussman Investment Trust, John Hussman, believes that the current level of stock prices of American companies is greatly overestimated. Therefore, the ongoing sale of shares on stock exchanges in the United States will end with the S&P falling to 70% compared to January highs. The situation looks alarming and reminiscent of the approaching Wall Street crash and the beginning of the Great Depression, when the “bubble” burst in 1929 (then the Dow Jones index immediately fell by almost 90%).
My impression is that investors are now enjoying the double top of the most extreme speculative bubble in US financial history.
- pointed out the famous economist.
At one time, Hassman predicted “bubbles” in the stock market in 2000 and 2008. Now he has warned of a new big risk.
At the same time, billionaire investor Jeffrey Gundlach, CEO and co-founder of DoubleLine Capital, which manages assets of more than $140 billion, clarified that the rise in the value of shares of IT companies specializing in artificial intelligence reminds him of the Dot-com bubble. at the end of 1999.
America faces a painful mix of persistent inflation and economic recession
- Gundlach is sure.
Other well-known experts also agree with Hassman's forecast. For example, GMO co-founder Jeremy Grantham, who also predicted the market decline in 2000 and 2008. Back in February 2022, at a conference in Miami, he warned trading participants that US stocks were in a “super bubble” that would eventually burst very spectacularly.
Merrill Lynch's chief economist, David Rosenberg, and the giant's former chief economist, Gary Shilling, also warned of a significant decline in US stocks.
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