Experts Warn of Upcoming Stock Market Correction: Predictions of S&P 500 and Nasdaq Composite Drop

New York, New York, USA United States of America
Economists believe a steep correction is on the horizon following this rally due to concerns of inflation and rising interest rates.
Experts are warning of an impending stock market correction with predictions of significant drops for the S&P 500 and Nasdaq Composite.
Some experts predict the S&P 500 could drop by around 86% and the Nasdaq Composite could drop by around 92%.
Experts Warn of Upcoming Stock Market Correction: Predictions of S&P 500 and Nasdaq Composite Drop

Stocks have been experiencing a significant rally in 2024, driven by robust corporate earnings and the artificial intelligence boom. However, some experts are warning of an impending stock market crash and bubble burst. According to various predictions, the S&P 500 could drop by around 86% and the Nasdaq Composite could drop by around 92%. Some economists believe that a steep correction is on the horizon following this rally. Harry Dent, for instance, predicts a bigger financial crisis than the Great Recession. Capital Economics also predicts a correction following a rally to 6,500 for the S&P 500. John Hussman thinks stocks could plunge as much as 70% once the bubble bursts, while Richard Bernstein believes large-cap stocks are way overvalued and looks positioned for a wipeout with most highly valued stocks dropping 50% or more. These predictions come amidst concerns of inflation and rising interest rates, which could impact the market's trajectory.


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Confidence

80%

Doubts
  • Some predictions suggest a drop as high as 92% for the Nasdaq Composite, which seems excessive.
  • The exact timing and extent of the stock market correction are uncertain.

Sources

76%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Top economist makes harrowing prediction set to happen within months

Unilad Media Ltd. Wednesday, 19 June 2024 18:32
  • Unique Points
    • Top economist Harry Dent predicts a bigger financial crash than the Great Recession
    • Economist Harry Dent warns of a longer and more severe economic downturn
    • The S&P 500 could go down 86% from its peak, and the Nasdaq 92%
    • Housing market is predicted to reach 2012 lows this year
  • Accuracy
    • Nvidia, a hero stock, could see a decline of 98% during the crash
  • Deception (30%)
    The author quotes Harry Dent, an economist, making predictions of a bigger financial crash than the Great Recession. However, the author does not provide any evidence or peer-reviewed studies to support these claims. The article also uses emotional manipulation by stating 'millions of Americans are still impacted by financial woes' and 'another financial crash?!'. This creates fear and sensationalism in the reader.
    • With the ongoing cost of living crisis, millions of Americans are still impacted by financial woes.
    • Another financial crash?!
  • Fallacies (80%)
    The author is making an appeal to authority by quoting Harry Dent as an expert on the economy and his predictions. The author also uses inflammatory rhetoric by stating that we could be in for a 'bigger financial crash than the Great Recession'.
    • "Economist Harry Dent has some grave predictions."
    • "Speaking in an interview with Fox News Digital, Harry Dent, a financial author and economist, has warned we could be in for a bigger financial crash than the Great Recession."
    • "I think were going to see the S&P go down 86 percent from the top, and the Nasdaq 92 percent. A hero stock like Nvidia, as good as it is, and it is a great company, [goes] down 98 percent."
  • Bias (80%)
    The author quotes Harry Dent making predictions of a bigger financial crash than the Great Recession and specific stock market percentage drops. These statements express a negative outlook on the economy and could be seen as fear mongering or sensationalizing economic instability.
    • "And again, this bubble has been going 14 years. Instead of most bubbles [going] five to six, it’s been stretched higher, longer. So you’d have to expect a bigger crash than we got in 2008 to ’09."
      • "I think we’re going to see the S&P [Standard & Poor] go down 86 percent from the top, and the Nasdaq 92 percent. A hero stock like Nvidia, as good as it is, and it is a great company, [goes] down 98 percent."
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (0%)
        None Found At Time Of Publication

      92%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      Stock market crash: 5 experts who think the bubble is close to bursting

      Business Insider Jennifer Sor Wednesday, 19 June 2024 18:33
      • Unique Points
        • Harry Dent predicts the S&P 500 could drop by around 86% and the Nasdaq Composite could drop by around 92% when the bubble bursts
        • Capital Economics predicts a steep correction following a rally to 6,500 for the S&P 500
        • John Hussman thinks stocks could plunge as much as 70% once the bubble bursts
        • Richard Bernstein believes large-cap stocks are way overvalued and looks positioned for a wipeout with most highly valued stocks dropping 50% or more
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (85%)
        The author makes several statements implying that a stock market crash is imminent and that the current market conditions resemble those of past bubbles. However, these statements are not fallacious on their own as they represent the author's opinion. The author also quotes several experts who make similar claims and provide specific predictions for potential market corrections. These quotes do not constitute fallacies either, as they represent the opinions of the quoted individuals. However, some of the language used by both the author and the experts could be considered inflammatory rhetoric, which lowers the score slightly.
        • ]The bears on Wall Street warn that the enthusiasm for artificial intelligence mirrors the internet bubble of the late 90s[
        • Stocks are in a bubble on the verge of bursting.
        • According to his firm’s most reliable valuation metric, the S&P 500 looks to be at its most overvalued since 1929.
      • Bias (80%)
        The author quotes several experts who predict a stock market crash and label it as a bubble. The author does not express any bias towards these predictions or the experts making them.
        • Fears of a painful sell-off have been rising in recent weeks, particularly as stocks continue to break through to record highs.
          • Stocks have been on a tear but there are still bears sounding alarms of a bubble about to pop.
          • Site Conflicts Of Interest (100%)
            None Found At Time Of Publication
          • Author Conflicts Of Interest (100%)
            None Found At Time Of Publication

          86%

          The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
          (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

          A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

          Nervous about the market? Here’s one thing you could do if shares start sinking fast

          CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Krystal Hur Monday, 17 June 2024 11:23
          • Unique Points
            • Stocks are trading near record highs after clarity on inflation and interest rates path.
            • Robust corporate earnings and AI boom drove the market rally in 2024.
          • Accuracy
            • Stocks have been reaching new record highs in 2024
            • The S&P 500 could go down 86% from its peak, and the Nasdaq 92%
            • Housing market is predicted to reach 2012 lows this year
          • Deception (80%)
            The article contains the author's analysis and opinions on the stock market and inflation, which are not deceptive in nature. However, there is selective reporting of data as the author focuses on the disinflationary impulse and ignores recent inflation reports that may indicate a reversal of that trend. This selective reporting could potentially mislead readers into believing that inflation is heading in the right direction when it may not be.
            • The bottom line ... is that there’s a disinflationary impulse coming. I think [Fed Chair Jerome] Powell was right to sort of look at [hotter-than-expected] January, February, March inflation data as maybe a little bit of an anomaly or a pause but not a reversal of that trend that’s going to continue to head to that 2% target.
            • We’re not ruling out rate cuts by September. We could easily have a cut. The data will tell us that, but I think the big takeaway for us is [inflation] going in the right direction.
          • Fallacies (100%)
            None Found At Time Of Publication
          • Bias (100%)
            None Found At Time Of Publication
          • Site Conflicts Of Interest (100%)
            None Found At Time Of Publication
          • Author Conflicts Of Interest (100%)
            None Found At Time Of Publication

          78%

          The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
          (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

          A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

          Stock market crash: 5 experts who think the bubble is close to bursting

          Business Insider Jennifer Sor Wednesday, 19 June 2024 18:35
          • Unique Points
            • Harry Dent predicts the S&P 500 could drop by around 86% and the Nasdaq Composite could drop by around 92% when the bubble bursts
            • Capital Economics predicts a steep correction following a rally to 6,500 for the S&P 500
            • John Hussman thinks stocks could plunge as much as 70% once the bubble bursts
            • Richard Bernstein believes large-cap stocks are way overvalued and looks positioned for a wipeout with most highly valued stocks dropping 50% or more
          • Accuracy
            No Contradictions at Time Of Publication
          • Deception (30%)
            The author makes multiple references to bears warning of a stock market bubble and impending crash. However, she does not provide any original analysis or evidence from the author to support this claim. Instead, she quotes several experts who have made bearish predictions about the stock market. This is an example of selective reporting as the author only reports details that support her preconceived notion of a stock market bubble without providing a balanced perspective. Additionally, some of these experts' predictions are sensational and lack credible evidence to back them up.
            • Fears of a painful sell-off have been rising in recent weeks, particularly as stocks continue to break through to record highs.
            • According to his firm’s most reliable valuation metric, the S&P 500 looks to be at its most overvalued since 1929.
            • That’s what I think we’re looking at. It’s multiple years of significant underperformance.
            • Stocks have been on a tear but there are still bears sounding alarms of a bubble about to pop.
          • Fallacies (85%)
            The author makes several statements implying that a stock market crash is imminent and that the current market conditions resemble those of past bubbles. However, these statements are not fallacious on their own as they represent the author's opinion. The author also quotes several experts who share similar views and provides evidence to support their claims in the form of historical data and valuation metrics. These quotes do not contain any logical fallacies either, as they are simply statements made by the experts. However, there is an instance of an appeal to authority when the author mentions that Capital Economics predicts a steep correction following a rally to 6,500 without providing any context or evidence that Capital Economics is a reliable source in this particular matter.
            • The bears on Wall Street warn that the enthusiasm for artificial intelligence mirrors the internet bubble of the late 90s
            • According to his firm’s most reliable valuation metric, the S&P 500 looks to be at its most overvalued since 1929
          • Bias (80%)
            The author quotes several experts who predict a stock market crash and believe the market is in a bubble. The author does not express any bias towards or against these predictions, but simply reports on them. However, the author's title and language used throughout the article (
            • Bubbles tend to inflate the most in their final stages as the excitement sort of reaches fever-pitch.
              • Fears of a painful sell-off have been rising in recent weeks, particularly as stocks continue to break through to record highs.
                • Stocks have been on a tear but there are still bears sounding alarms of a bubble about to pop.
                • Site Conflicts Of Interest (100%)
                  None Found At Time Of Publication
                • Author Conflicts Of Interest (100%)
                  None Found At Time Of Publication