The ‘perfect Eiffel Tower blow-off top’ in stocks is building up, says economist
The post The ‘perfect Eiffel Tower blow-off top’ in stocks is building up, says economist appeared on BitcoinEthereumNews.com. With the stock market roaring to new record highs, led by the S&P 500, economist Henrik Zeberg has reiterated that U.S. equities are laying the groundwork for a historic collapse. In his latest commentary, Zeberg noted that stocks are experiencing a final euphoric rally. While he acknowledged that equities could climb even higher than previously expected, this does not mean a crisis has been avoided, he said in an X post on July 26. According to Zeberg, the surge in liquidity is inflating valuations to unsustainable levels, creating the conditions for a sharp reversal. He described this setup as the “perfect Eiffel Tower blow-off top,” a pattern where markets rise steeply before crashing just as dramatically. The fact that I know think, that #Equities can rally higher than previously expected, does not mean that the Recession and Crisis are called off! On the contrary! Liquidity inflow will only create an even higher top, which markets can crash from. The perfect “Eiffel-Tower”… — Henrik Zeberg (@HenrikZeberg) July 26, 2025 Despite the ongoing bullish momentum, Zeberg warned that extreme euphoria, FOMO, and blind faith in Federal Reserve support are often signs of an imminent market shift. Notably, the economist has previously argued that the top of the market will only form once even the most bearish investors turn bullish, a signal, in his view, that the cycle is about to end. Earlier, Zeberg forecasted that the S&P 500 could reach as high as 6,800 points, driven by a final wave of speculative mania in risk assets, including cryptocurrencies. But beyond that, he anticipates a severe downturn. Worst recession in history Zeberg warned that markets should brace for the worst recession since the Great Depression of the 1930s. He believes that early signs of this collapse are already evident, citing weakness in the…
The post The ‘perfect Eiffel Tower blow-off top’ in stocks is building up, says economist appeared on BitcoinEthereumNews.com.
With the stock market roaring to new record highs, led by the S&P 500, economist Henrik Zeberg has reiterated that U.S. equities are laying the groundwork for a historic collapse. In his latest commentary, Zeberg noted that stocks are experiencing a final euphoric rally. While he acknowledged that equities could climb even higher than previously expected, this does not mean a crisis has been avoided, he said in an X post on July 26. According to Zeberg, the surge in liquidity is inflating valuations to unsustainable levels, creating the conditions for a sharp reversal. He described this setup as the “perfect Eiffel Tower blow-off top,” a pattern where markets rise steeply before crashing just as dramatically. The fact that I know think, that #Equities can rally higher than previously expected, does not mean that the Recession and Crisis are called off! On the contrary! Liquidity inflow will only create an even higher top, which markets can crash from. The perfect “Eiffel-Tower”… — Henrik Zeberg (@HenrikZeberg) July 26, 2025 Despite the ongoing bullish momentum, Zeberg warned that extreme euphoria, FOMO, and blind faith in Federal Reserve support are often signs of an imminent market shift. Notably, the economist has previously argued that the top of the market will only form once even the most bearish investors turn bullish, a signal, in his view, that the cycle is about to end. Earlier, Zeberg forecasted that the S&P 500 could reach as high as 6,800 points, driven by a final wave of speculative mania in risk assets, including cryptocurrencies. But beyond that, he anticipates a severe downturn. Worst recession in history Zeberg warned that markets should brace for the worst recession since the Great Depression of the 1930s. He believes that early signs of this collapse are already evident, citing weakness in the…
What's Your Reaction?
