The global economic landscape is moving towards the danger zone due to global conflicts and various macroeconomic factors. From de-dollarization trends to dumping billions worth of US Treasuries and settling trade in local currencies, the paradigm shift is occurring in real-time. The BRICS alliance is making it worse as it’s involved in all three formats that can cause damage to the US dollar and the stock market.
Also Read: BRICS: Feds Acknowledge Sanctions Led To De-Dollarization
BRICS kick-started the de-dollarization agenda, dumped US treasuries worth billions, and is also paying local currencies for global trade. This move from BRICS could eventually trickle down on the US economy and could affect the stock market and the dollar. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
Also Read: 30 Countries Ready To Enter BRICS After 2024 Summit
BRICS: Worst US Stock Market Coming in 2 Years, Warns Financial Analyst
Macroeconomist Henrik Zeberg warned that a “worse stock market crash” could turn reality in the next two years. He explained that the crash could severely affect the US stock market and the broader cryptocurrency market. Zeberg noted that an impending crash in two-year US Treasury yields could also lead to a recession. If that happens, BRICS will benefit from the crash as the alliance is cutting ties with the US economy, stock market, and the dollar.
Also Read: BRICS: Gold Will Displace the U.S. Dollar, Says Top Analyst
The analyst shared a chart that compared the two-year Treasury yields with the Federal Funds Rate. The chart shows historical patterns where the market yield preceded the Federal Reserve actions. He also pointed out that inflation at 3.4% today is also worrisome as the Feds failed to control price rise. BRICS is also trimming US Treasuries from its reserves since 2022.
Also Read: BRICS: Russia Dumps $4.5 Billion in U.S. Bonds
“A crash in 2-year yields is coming. And we got clear recession signals. Be worried! Be very worried! I am! The coming recession will be the worst SINCE 1929. But – first blow off top in US Equities (stock market) and Crypto,” the expert said.
