‘This blow-off top will be one for the history books’, warns top economist

“I think the blow-off top is still going, and you see it in various markets around the world. <…> Actually [markets] have seen new all-time highs after everybody kind of dismissed that in April, we could see that. Now we are seeing it,” he said.

He pointed to strong momentum across global markets, many of which have recently reached fresh all-time highs, as evidence of a continued bullish trend.

However, while Zeberg remains optimistic in the short term, his long-term outlook is far more bleak.

Recession on the horizon

The expert has cautioned that the explosive rally will ultimately be followed by the worst recession and bear market since the 1930s, as mounting economic stress takes hold in the U.S.

“Were getting closer and closer [to a recession]. There are more and more signs now that the deterioration is going through,” he added.

Zeberg highlighted deepening cracks in the housing sector and early signs of weakness in both the labor market and the broader real economy. He believes these are early indicators of a gradual deterioration that could soon accelerate.

Bad #ADP Private Payrolls today!

Tomorrow we will see whether we get further confirmation of a slowdown of the Economy when we get Nonfarm Payrolls #NFP

The economist also expects this market euphoria to spill over into cryptocurrencies before they, too, experience a dramatic collapse.

His outlook comes during a year marked by volatility driven by trade tariff conflicts and geopolitical tensions.

With the effects of those headwinds now easing, markets have responded positively, with the benchmark index recording several consecutive days of gains. Bullish momentum is expected to continue into July.