Investors Beware: Largest Market Crash Since 1929 on the Horizon

Henrik Zeberg, an expert in macroeconomics, has expressed a concerning outlook for investors, warning of an impending market downturn unlike anything seen in the past century.

Zeberg recently shared a chart with his sizable Twitter following of 102,100 users that demonstrates how the National Association of Home Builders Housing Market Index (HMI) and the US unemployment rate have historically correlated with each other.

The similarities are scary!

EQUITY BLOW-OFF-TOP COMING

then

LARGER MARKET CRASH THAN 2007-09
(and in fact worst since 1929) pic.twitter.com/W0VncAv0kH

— Henrik Zeberg (@HenrikZeberg) March 10, 2023

The HMI gauges the state of the American housing market by evaluating the current and projected sales of single-family homes.

Zeberg has observed striking similarities between the current state of the HMI and unemployment rate and those that existed just before the 2007 housing market collapse, which resulted in the Great Financial Crisis.

Zeberg has predicted that the impending housing market crash will coincide with a significant surge in the stock market.

He believes that the recent collapse of Silicon Valley Bank (SVB) may be the catalyst for the predicted stock market rally.

#SVB is the catalyst for #FED #Powell to PAUSE!!

This at a time where the economy is not in #Recession

The market response will be an EXTREME RALLY TO ATHs before Recession sets in and@markets crash in largest Crash since 1929

Stay tuned at: https://t.co/X89WATQHEP

— Henrik Zeberg (@HenrikZeberg) March 11, 2023

According to Zeberg, the stock market will soar to all-time highs before the onset of a recession, which will trigger the largest market crash since 1929. He also anticipates that the US will enter a recession by the end of 2023.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.