One analyst expects the stock market to fall by 50% from now on!

More than $240 billion has been wiped from the crypto-currency market and the Crypto Fear and Greed Index continues to slide downward, approaching the “extreme fear“. In addition, Chief Strategist Todd ‘Bubba’ Horwitz explains that the Federal Reserve raising rates during a recession will wreak havoc on what’s left of the American middle class.

Stocks and crypto-currencies spooked by Fed chairman’s statements

After Federal Reserve Chairman Jerome Powell explained that fixing the U.S. economy and the current price volatility will take “some time“, the head of the central bank stated that a “some pain” would be felt by the Fed’s tight policy. After Powell’s statements, Wall Street shuddered, and by Friday’s close, the three major benchmarks (S&P 500, Dow Jones and Nasdaq Composite) were down more than 3%. The Nasdaq was the biggest loser on Friday, losing 3.94% and posting its worst losses since mid-June.

The S&P 500 Index plunged 3.37%, closing the day at 4,057.66 points, and the Dow Jones Industrial Average lost more than 1,000 points, or about 3.03%. The world’s two major precious metals, gold (Au) and silver (Au), lost between 1 and 2 percent. 1.13% (Au) to 1.79% (Au) to start the weekend. Platinum (Pt) slipped 2.38% and palladium (Pd) fell 1.49% against the U.S. dollar.

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Crypto-currency markets also did not handle the Fed chair’s comment well, as the value of the euro fell 2.5%. crypto-currency economy lost 6% on Friday and fell another 4% on Saturday. During Saturday’s trading sessions bitcoin, fell below the $20,000 area for the first time since mid-July.

Today’s CFGI score is even lower than the 33 recorded nine days ago, as the current CFGI score is 28 or “fear“. Similarly, the Cboe Volatility Index (VIX) was up 3.78 points after Powell’s ten-minute speech.

Market strategist expects 50-60% haircut in equity markets

A number of analysts and investors think global markets can only get worse. Analyst, at, Todd “Bubba“Horwitz, told Kitco’s David Lin in a recent interview that stock markets could fall another 50 percent from here on out. Horwitz attributes his forecast to the Fed raising rates in what many consider a recession.

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Todd Horwitz also discussed Powell’s comment at the Jackson Hole symposium. The market analyst stated, “the remarks are those of an idiot“, pointing out that at last year’s symposium, Powell said that inflation was transitory.

[Jerome Powell] tries to escape what will happen, namely hyperinflation“, Horwitz opined. “Wait until the price of oil starts to soar again. What do you think will happen to inflation then? We’re going to have a food shortage this year. We will have food riots in many countries“, the analyst added.

The analyst concluded that stocks will suffer but there may still be some opportunistic value in the commodity markets. “Overall, I expect a 50 to 60 percent discount in these markets.” said Mr. Horwitz. “If someone looks at their own finances, they can certainly see that this is a time of recession and they are watching their spending.

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