Wall Street “Prophet” Warns: US Stocks Could Plummet by 30%! Economic Recession Looms Imminent

Renowned Wall Street prophet Gary Shilling has issued a serious warning about the possibility of an economic recession occurring in the next few months. He predicts that after the bubble bursts, US stocks could plummet by 20-30%. Shilling expressed concern about the high valuation of the stock market, as well as the concentration of a few stocks occupying a large portion of its current value. He warns that this concentration indicates a negative attitude towards other parts of the stock market and the overall economy. Shilling also points out several indicators, such as the continuous decline of leading economic indicators, weakened consumer confidence and demand, and small businesses reducing hiring plans, all of which suggest that an economic recession is approaching. According to Shilling, looking at the data from the past seven economic recessions, on average, the recession occurred 26 months after the Federal Reserve began raising interest rates. Since the first rate hike of this round occurred about two years ago, this seems to imply that the economy is about to enter a downturn. Despite the current unexpected positive performance of both the stock market and the economy, many investors are still willing to listen to Shilling’s opinion due to his decades of experience and long-term track record. For those who are concerned about macroeconomics and market trends, Shilling’s warnings provide an important perspective, especially in the current backdrop of global economic uncertainties. Additionally, in a report in March, this seasoned economist referred to “the manic speculation that seems destined for a major setback” and described cryptocurrencies such as Bitcoin as “pure speculative tools.”