Stocks are highly likely to crash in next 2 months amid credit risk

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Stocks are highly likely to crash in the next 2 months as investors are still too distracted by fads to price in credit risk, market guru says

The stock market is likely to decline sharply within the next two months, Larry McDonald of"The Bear Traps Report" said.

"Those are massive losses under the surface. Our 21 leading systemic risk indicators are pointing at the highest probability of a crash or a sharp drawdown in the next 60 days. It's the highest probability since Covid," he said onThe Nasdaq, which has outperformed the S&P 500 and Dow Jones Industrial Average this year, is ignoring this credit risk, McDonald added.

"What happens is, as a shock comes in, credit markets start to price in the risk but equities don't — they focus on things like AI or things like the dot-com revolution in the '90s."

 

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incredible time to buy underpriced stocks. Could not be a greater opportunity for king making. Everyone who did not buy stocks that were overvalued are going to become rich based on their actions in the following weeks. amazing times

doomers 🤦‍♂️

Oopss

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