Economist Henrik Zeberg, renowned in financial circles, has shared an optimistic forecast for stocks and cryptocurrencies in the coming months. Speaking on social media platform X, Zeberg predicted a substantial rally for both Bitcoin and altcoins, as well as stocks, potentially extending through the end of the year.
What Drives Zeberg’s Bullish Forecast?
Zeberg’s positive outlook hinges on two primary factors. He argues that the anticipated “peak blow-off”—a rapid price surge followed by a significant drop—has yet to occur. Consequently, he expects a pronounced rally in select stock indices, Bitcoin, and altcoins. Additionally, he believes market sentiment will turn extremely bullish, which will further fuel the upward trend. Zeberg anticipates that this surge will be attributed to advancements in artificial intelligence (AI) and Federal Reserve liquidity.
Why Might the Market Surge Be Unsustainable?
Despite his optimistic short-term view, Zeberg cautions that the rise in risk assets like stocks and cryptocurrencies won’t be sustainable. He forecasts a significant decline once the market peaks, potentially occurring in the third or fourth quarter of 2024. Following the peak, he expects the onset of a recession in the last quarter of the year, leading to a rapid market downturn.
Key Takeaways for Investors
• Investors should be vigilant of the anticipated peak in U.S. markets by late 2024.
• Market sentiment driven by AI and Fed liquidity could signal an approaching peak.
• Prepare for potential significant corrections following a short-term positive outlook.
• Watch for the S&P 500 reaching the 6,150 level as an indicator of the market nearing its peak.
Zeberg also highlighted the enthusiasm he expects among market participants as the S&P 500 index hits new highs. He believes that as the index nears 6,150, bullish trends will strengthen, driven by AI and liquidity factors. However, he warned that such enthusiasm could signal that the market is nearing its peak.
Currently, the S&P 500 trades around 5,221. While Zeberg’s analysis suggests a positive short-term outlook, he advises investors to brace for significant corrections in the future.