Mark Spitznagel warns of an 80 percent stock collapse and analyst predict a 50 percent housing crash next year

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Spitznagel told Reuters (1) in an interview that he expects “an 80% crash” but also noted that he believes it will only happen “after a massive, euphoric, historic blow off rally.”

While the stock market might be headed for an unstable future, he believes that a 20% gain for the S&P 500 index is possible and that there is still some time before the crash.

“I would argue we’re in the middle of that (rally) right now, not at the end of it,” Spitznagel continued.

He believes the economy is being held up by ultra-loose monetary policy and that we have not yet experienced the full impact of the pandemic, noting: “We’re going to see the consequences of that … it takes time.”

https://finance.yahoo.com/news/hedge-fund-legend-mark-spitznagel-155700175.html

The U.S. housing market is going to face a price correction “worse than 2008,” according to housing analyst Melody Wright, who expects home prices to drop in half starting as soon as next year.

“I see it happening over several years with the potential to deteriorate faster than in the last cycle,” she told Newsweek. “For instance, prices did not bottom until 2012 during the last cycle. I believe we could get started in earnest next year on the price decline and see a rather large drop historically speaking but still think it could take several years to bottom.”

What Is Happening in the Housing Market?
Rising inventory and dwindling demand have brought down home prices in many U.S. metropolitan areas this year, especially in those markets in the Sunbelt and the South which became overheated between 2020 and 2022.

At the national level, the vertiginous price growth that characterized the pandemic years has also slowed to a grind, with the median sale price of a home in October only 1.2 percent higher than a year ago, according to Redfin, at $439,701.

According to a new report from Zillow, 53 percent of all U.S. homes lost value over the past 12 months—the most since 2012.

While affordability has slightly improved, however, millions of Americans are still being kept on the sidelines of the housing market by higher home prices, property taxes, and home insurance premiums, as well as still-elevated borrowing costs.

https://www.newsweek.com/price-correction-worse-2008-housing-market-analyst-11103703