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Price Prediction

“We are in the early stage of the top of the explosion,” the economist warns

Economist Henrik Zipberg has warned that the current financial situation may be the beginning of the higher stage.

On April 11, his comments follow a recovery in the market after President Donald Trump’s decision to stop most of the customs tariffs, which had previously shook investors and contributed to market fluctuations.

In fact, the stock market reaction was positively, as the S&P 500 standard that ended the last session was approximately 2 %. In the weekly schedule, the index rose more than 8 %.

The upper part of the explosion is the market pattern that is characterized by increasing severe equivalent prices that fed with severe optimism and speculation. It usually indicates the final stage of the bull market before the sharp reflection and potential collapse.

Zipberg’s latest comments are in line with his previous warnings, as he has to caution The markets should be cautious about the top of an imminent explosion. he Secure This will affect both cryptocurrencies and stock markets, expecting that prices will “work” much higher “despite potential withdrawal and unification.

The effect of liquidity on the financial markets

The economic institution attributes the constant market to bring to the liquidity received, which is believed to lead to pushing the risk assets to the upper stage of the explosion before reaching the “real summit”. His analysis indicates that although the market is ready to achieve gains in the short term, investors must prepare for a sharp contraction as soon as the speculative side peaks.

Despite his short -term bullish outlook, Zipberg is still cautious about long -term effects. Previously to caution One of the imminent stagnation, noting that it will be the worst in history when it strikes the shrinkage. As Finbold mentioned, the expert noted that the stagnation in the market is inevitable despite any interventions.

He said: “When you realize that the economy is not in a stagnation – the markets will gather to Aths News <...> We will have the worst stagnation in the 1930s – and the similar bear market. ”

It should be noted that after uncertainty about the definitions, a section of Wall Street increasingly warned of the economy heading towards stagnation. However, Zipberg has since then to reject The current recession is afraid, on the pretext that economic indicators such as primary unemployment claims, which are still at low levels historically, are not yet indicating an immediate contraction.

Distinctive image from Shutterstock

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