The BIGGEST market crash is loading NOW
2008 dump will repeat in 2025, crypto and stocks will go to zero
Debt level, stock ratios and FED actions will destroy the market
🧵 Here is what's happening and how to prepare for Black Monday👇
1/❒ Housing market
The housing market is currently at its lowest point since 2008
Home prices have dropped significantly, signaling potential instability
If this trend continues, it could trigger a chain reaction in the broader economy
2/❒ Stock market ratios
The stock-to-ratio levels are mirroring what we saw just before the 2008 crash
This similarity raises alarms as it suggests that stocks may be significantly overvalued
With such high valuation metrics, a correction could be imminent, and it’s likely to impact crypto markets as well
3/❒ Japan bonds
Japan’s bond yields are at their highest level since 2008
If Japan Government Bonds face a sudden selloff, it could cause a global bond crisis
This would send shockwaves through global financial markets, affecting liquidity in crypto markets, leading to a deep downturn
4/❒ Unrealized losses
Banks are sitting on massive unrealized losses from bonds they hold
If the bond market continues to struggle, these losses will materialize, potentially triggering a banking crisis
Crypto could be hit hard as investors flee to more stable assets, causing a sharp downturn
5/❒ Debt levels
Private and corporate debt have reached all-time highs
As debt continues to accumulate, the risk of defaults increases, which could result in a market crash
Such financial instability will spread to crypto as investors seek safer assets
6/❒ Stock market
The top 7 stocks are driving 90% of the gains in the S&P 500
This kind of concentration is alarming because it indicates that the market is overly dependent on a handful of companies
If these stocks fall, it will have a cascading effect on the broader market
7/❒ Dot-Com bubble
We are witnessing the most concentrated market since the dot-com era
Just like back then, speculative investments are driving up asset prices without proper fundamentals
If the market corrects, it could mirror the 2000 dot-com bust
8/❒ Volatility Index
The VIX is currently at its highest level since the start of the bull run
This indicates increased market fear and uncertainty, and signals that investors are expecting higher volatility
A market correction will lead to significant volatility in crypto prices
9/❒ Rate Cuts
Historically, rate cuts have often been a precursor to a crash
The 2008 crash occurred 6-9 months after the first rate cut, and we are seeing similar conditions today
If the Fed cuts rates, it could signal trouble ahead, and markets may react negatively
10/❒ Buffett's Indicator
The Buffett Indicator is above 200%, signaling we're in full bubble territory
Warren Buffett is sitting on a record $330 billion in cash, indicating he’s hedging against a potential market crash
The smart money is preparing for a downturn, and this caution could spill over into crypto markets, triggering a sell-off
All the above factors might escalate in days or weeks from this point
It will be a good move to diversify your portfolio and rethink your strategy
Always do your own research and stay safe.