U.S. stocks may plummet 30% in the near future and return to 2010 levels after the election

Brace for the S&P 500 to crash 30% before an even bigger collapse after the election, markets guru David Brady warns #NewsBreak https://t.co/IzXx5skQ3T — Michael Cervellino (@mike_cervellino) April 18, 2024

Well-known U.S. market analyst David Brady warned that the U.S. S&P 500 Index (S&P 500) may plummet 30% in the near future, from more than 5,000 points to around 3,500 points, setting an 18-month low. Although there will be a slight rebound before the November 5 election, considering the economic and geopolitical pressures faced at home and abroad, it cannot last too long. After the US election, it will face another wave of heavy losses.

"Business Insider" reported that Brady is not only a market analyst, but also a fund manager and former foreign exchange trader. He has written the "FINEST Report" book, analyzing the metals and mining market, and now shares the above predictions on the podcast "Thoughtful Money" .

Brady believes that U.S. stocks have been seriously overvalued, and investors face far greater downside risks than upside risks, and it seems likely that there will definitely be a sell-off. However, the Biden administration hopes to maintain a strong stock market and economy before the November election, so the Federal Reserve (Fed) will reverse the situation by cutting interest rates and increasing balance sheets.

He said, "My humble opinion is in the short term, (the stock market) falls 20-30%, and then the Fed will respond as usual, and then the market will rise. After the election, the stock market will be hit hard. I predict that the stock market will "It's going to go down because of what's going on in the U.S. economy and elsewhere in the world (geopolitics)."

In addition, Brady also predicted that after the US election, the S&P 500 index may plummet to around 1,000 points, erasing the gains of the past 14 years and returning to the level of 2010.

In fact, Brady is not the only one with a pessimistic prediction. The prototype of the protagonist of the movie "The Big Short", the legendary investor Michael Burry, the bubble prophet and co-founder of the asset management company GMO Jeremy Grantham, who was hailed as a "prophet" by Wall Street Investor Gary Shilling has issued severe warnings about the market and economy.

But it is worth emphasizing that the U.S. economy and stock market largely contradict these claims. U.S. stocks hit record highs earlier this year, inflation cooled significantly, unemployment remained around historic lows, and economic growth remains strong.