Renowned economist Henrik Zeberg is cautioning his substantial social media following about a significant economic event that has not been witnessed since nearly a century ago, expected to manifest in 2025. With over 140,700 followers on the platform X, Zeberg is forecasting a continued upward trajectory for risk-on assets like stocks and cryptocurrencies in the coming months.

Despite the current bullish sentiment driving assets higher, Zeberg anticipates a sudden shift in market dynamics towards the end of the year, coinciding with a peak in exuberance among market participants. He warns of an impending end to the bull market, characterized by a blow-off top scenario where US markets surge, leading to a rotation from large caps and foreign markets to crypto and small caps.

Zeberg's projections suggest that as optimism peaks and confidence in central bank support grows, a major recession will loom on the horizon by the year's end. He foresees the Federal Reserve resorting to monetary stimulus measures to prop up the economy, albeit temporarily, as the underlying issues of recession and deflation persist, eventually culminating in stagflation – a challenging economic scenario marked by sluggish growth, rising unemployment, and inflationary pressures.

The economist's insights from January 2023, where he accurately predicted record highs in the stock market followed by a sudden crash, underscore the credibility of his current warnings. Back then, the S&P 500 was hovering around 4,000 points, and Bitcoin was valued close to $20,000, indicating Zeberg's track record in forecasting market movements.

As the economic landscape continues to evolve, Zeberg's foresight and analysis provide valuable insights for investors and market participants to navigate the shifting tides and prepare for potential challenges ahead. By staying informed and heeding cautionary signals, individuals can better position themselves to weather the storm and make informed decisions in the face of economic uncertainty.