Economist Henrik Zeberg is sounding the alarm about the state of the United States stock marketUnder the pretext that the shares are approaching what he considers the largest financial A bubble in history
Zeberg said in a press statement that the technical analyst, who was pessimistic about the economy in the long term, confirmed that these conditions are heading towards a severe economic contraction and market collapse. mail On May 10.
He issued this warning based on the Buffett Index, which compares the total market capitalization of the US stock market with the gross domestic product, which has risen to historically extreme levels. The latest chart puts the index near 230% by the end of 2025, about 75% above its long-term trend.
The data shows that valuations are moving beyond historical high ranges, including the +2 standard deviation region typically associated with speculative excess and overheated markets. Current levels also exceed those seen during Dot-com bubble And the post-pandemic journey.
Historically, the Buffett Index has spent decades fluctuating near or below the long-term trend line before rising sharply from the mid-2000s onward, pushing the market deeper into the region associated with higher downside risks.
Zeberg argued so Investors Ignoring the bubble ignores the clear warning signs in various financial markets, ensuring that the current cycle is no different from previous speculative booms.
Although he believes markets may continue to rise before peaking, Zeberg warned that conditions are nearing breaking point.
Zeberg’s ongoing economic warnings
Overall, Zeberg emphasized that global markets are approaching the euphoric final stage of a multi-year bull cycle, leading into what he believes could become one of the most severe recessions in decades.
As of early May 2026, the expert described the rise in stocks and Cryptocurrencies As a classic “blowout top,” driven by excess liquidity and investor optimism despite weak economic fundamentals.
He expected Standard & Poor’s 500 It could climb towards the 8000-8200 range before reversing sharply.
Zeberg pointed to weak consumer finances, rising delinquencies and slowing private-sector job growth as signs that the economy is already deteriorating.
Under his business cycle model, the current parabolic advance, fueled by credit expansion and investor FOMO, could peak in the first or second quarter of 2026 before giving way to a major collapse, perhaps worse than the global financial crisis. 2008 financial crisis.
His warning comes at a time when investors remain driven by optimism artificial intelligence Enthusiasm, strong corporate earnings, and expectations of future interest rate cuts, despite growing concerns about extended market valuations.
