Veteran Trader Warns of Potential US Stock Market Collapse Amid Economic Weaknesses
Veteran trader Todd Horwitz has issued a stark warning about the fragility of the US stock market, suggesting a correction of up to 60% could be imminent. Market resilience, he argues, is built on shaky foundations—overestimated economic strength and weak assumptions. Falling merger activity and banking sector stress signal a late-stage cycle, with rate cuts likely benefiting institutions rather than households.
Horwitz paints a picture of stagflation rather than recovery, with inflation and stagnant wages eroding consumer purchasing power. The disconnect between headline indices and underlying economic conditions masks systemic vulnerabilities across labor markets, policy frameworks, and corporate fundamentals. Optimism, he contends, is dangerously misplaced.
