Renowned economist Henrik Zeberg is sharing his predictions for the future of stocks and cryptocurrencies in the upcoming months. With a substantial following of 139,600 on the social media platform X, Zeberg believes that both stocks and crypto are poised for significant rallies that could extend until the end of the year.

Zeberg highlights two narratives that he believes will fuel the bullish sentiment. Firstly, he asserts that the “blow off top” phenomenon is not yet over, indicating that certain indices and cryptocurrencies are primed for an extreme rally. Secondly, he predicts that sentiment will become extremely bullish, with investors embracing a positive outlook.

However, despite his optimism for the short-term, Zeberg anticipates a sharp decline for both stocks and crypto once they reach their peak. He predicts that the top of the US markets will occur in the third or fourth quarter of 2024, followed by a recession and a rapid decline in market performance.

Zeberg also suggests that market participants will become overly bullish as the S&P 500 index continues to climb. He expects this sentiment to reach its peak as the S&P 500 approaches 6,150 points. He notes that discussions surrounding artificial intelligence and market liquidity will dominate during this time, with investors attributing the market’s upward trajectory to these factors.

Currently, the S&P 500 is trading at 5,221 points.

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