๐๐ -๐๐น๐ฎ๐ฐ๐ธ๐ฅ๐ผ๐ฐ๐ธ ๐๐ป๐๐ถ๐ฑ๐ฒ๐ฟ ๐ช๐ฎ๐ฟ๐ป๐: ๐จ.๐ฆ. ๐ฅ๐ฒ๐ฐ๐ฒ๐๐๐ถ๐ผ๐ป & ๐ฑ๐ฌ% ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐๐ฟ๐ฎ๐๐ต ๐๐ผ๐บ๐ถ๐ป๐ด
Edward Dowd, a former BlackRock fund manager, just gave a major warning in a Market Disruptors interview.
๐๏ธ Housing Crash + AI Bubble = Economic Trouble
He says the U.S. could face a deep recession soon, due to:
โ๏ธ New home permits falling since 2022
โ๏ธ Rents dropping, showing weak demand
โ๏ธ AI bubble bursting, just like past tech hype cycles
โ๏ธ Less illegal immigration and government spending to fuel growth
๐ Dowd: Stock Market Could Drop 50% Like Before
โThe recession may start soon, and the bottom could hit in Q1 2026,โ Dowd says.
โ๏ธ Past crashes (Dot-com, 2008) saw 50% drops
โ๏ธ Dow Jones is down 15% from its 2024 peak
โ๏ธ But Dowd warns: โThatโs just the beginningโ
๐ฃ Root Problem: Too Much Debt, Not Enough Real Growth
โ๏ธ Global debt has exploded
โ๏ธ COVID money printing masked the risks
โ๏ธ Rising auto loan defaults and commercial real estate stress signal more pain ahead
Dowd expects deflation next, pushing the Fed to cut rates and print again.
๐ก๏ธ Dowdโs Safety Plan: Cash, Gold โ But Caution on Bitcoin
โ๏ธ Hold cash & T-bills (like Buffettโs Berkshire)
โ๏ธ Buy physical gold
โ๏ธ Be careful with Bitcoin โ it's still volatile and tied to risk markets
โณ Final Take: Classic Recession Ahead โ Act Smart
No doom talk here โ just an โold-school deep recession.โ
If it plays out, we could see pain in 2025 but recovery in 2026.
Will stocks crash 50% again? Or will the Fed stop it early?
Letโs discuss.