Economist Henrik Zeberg is sounding the alarm for the US stock marketthey argue that the amount is approaching what they consider to be too large finances boil in history.
The technologist, who has been fighting the economy for a long time, emphasized that this is leading to a recession and a collapse of the market, Zeberg said in X. post on May 10.
He issued a warning based on the Buffett Indicator, which compares total US stock market capitalization to GDP, at an all-time high. The latest chart puts that mark at around 230% by the end of 2025, about 75% higher than the long-term trend.
Which shows the trend moving beyond historical highs, including the +2 deviation zone that is usually associated with speculative and overheated markets. Current values also exceed those observed at this time The dot-com bubble and post-pandemic meeting.
Historically, the Buffett Signal spent decades hovering near or below its long range before rising sharply from the mid-2010s onwards, pushing the market into areas associated with higher risk.
Zeberg disputed that money to ignore the bubble is to ignore the clear signals throughout the financial markets, and to maintain that the current situation is no different from previous speculations.
While he believes the market may still go higher before it goes up, Zeberg cautioned that the situation is far from over.
Zeberg’s persistent financial warning
Overall, Zeberg maintained that global markets are approaching the end of a multi-year bull run, setting off what he believes could be the most difficult period in decades.
By the beginning of May 2026, the analyst explained the rally in equities and crypto currency as the “high end” of the economy, driven by economic growth and business optimism despite a declining economic base.
He made a project The value of the S&P500 they can climb to 8,000–8,200 before falling back too far.
Zeberg pointed to weaker consumer spending, a rise in crime, and a slowdown in private sector employment as signs that the economy is beginning to deteriorate.
Under his business model, the recent boom, fueled by credit expansion and FOMO, could last into the first or second quarter of 2026 before a major crash, which would be worse than it has been. The financial crisis of 2008.
His warning comes as trade prospects continue to falter artificial intelligence interest rates, strong corporate profits, and expectations of future interest rate cuts, despite growing concerns about stock market growth.
