Expert Warns of 80% Crash in Next 3-6 Months

• David Hunter believes an 80% stock market crash is coming.
• He warned that rising inflation would cause the Fed to tighten policy sooner than investors expect.
• The drop would be the biggest since 1929.

David Hunter thinks

Federal Reserve

Chair Jerome Powell is correct when he says that inflation is transitory.

But that doesn’t mean Powell and the Federal Open Market Committee won’t end up capitulating to soaring inflation in the months ahead, Hunter says.

Hunter, the chief macro strategist at Contrarian Macro Advisors who has been working in markets for 48 years, believes that an economic bust is ahead given the amount of debt and leverage in the economy and markets, and that inflation will continue to rise to six or seven percent before it falls.

The Fed won’t be able to ignore these inflation levels, he said during a recent interview with the Liberty and Finance YouTube channel, and will be forced to turn hawkish on policy. Inflation rose in September for the sixth-straight month above economists’ expectations. The Consumer Price Index, a primary measure of inflation, is up 5.4% year-over-year. October’s data comes out November 10.

“Jay Powell talks about transitory, or certainly did for a long time, and got mocked for it because we’re watching things that look pretty permanent coming in,” Hunter said. “But he’s right that a lot of this had to do with the pandemic and the opening up and…