Wall Street veteran predicts “historic” stock market shock within months

David Hunter, a macroeconomic strategist who spent just shy of half a decade working on Wall Street, has made a 2023 stock market prediction that will shock most investors.

Renowned for his contrarian stock market views, Hunter’s latest big call is well against market consensus.

Despite fears surrounding inflation stagflation, rising rates, slowing economies and heightened geopolitical risks, Hunter says get ready for an explosive stock market rally.

In an interview, he went as far as to label it ‘historic’.

“If I’m right about where we are, we’re on the verge this year of the biggest market rally potentially in history,” Hunter told Dunagun Kaiser.

The market veteran believes the U.S. Federal Reserve’s quantitative tightening is a major mistake, and he says the Fed should stop “trying to talk the market down”.

“The stock market is not where the Fed should should be thinking they’re an expert, they should not pick a number and say ‘we think the market’s overvalued or we think this’.

“The market is a leading indicator. In the aggregate the market is a much better predictor of the future than the Fed will ever be, and by trying to force the market down he’s (Jerome Powell) going to have his head handed to him.”

Hunter’s 2023 stock market predictions are for the S&P 500 to move over 6,000 points in the first half of the year, the NASDAQ at 20,000, and the Dow at 45,000.

Currently the S&P 500 sits at around 3,570, the NASDAQ at 11,140, and the Dow at 33,375.

Jerome Powell has got the street convinced that it’s going a lot lower, so everybody’s positioned negatively, everybody’s bearish, people are worried the Fed is going to cause a hard landing in the economy.

“So all of that is playing out and I think we’re really on the verge of what is going to be a move up in the market again.

“Once you’re in the blow-off mode, or the melt-up mode, to where it’s going vertical there’s really no way of knowing exactly where it stops.”

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“One last hurrah”: 2023 stock market rally to be followed by bust

Hunter says the stock market rally will be a response to the Fed Reserve’s policy error. But he believes the historic rally will be followed by a historic bust, akin to that of the 1930’s depression.

“Ultimately my prediction is that this will all lead to a global bust you know probably second half of this year is when that begins. We’ll have soft landing recession in the first half that morphs into a much more severe downturn as it moves along this year.

“It will be a global bust, so this across the globe – not just U.S., the ECB is making the same error, the Bank of England, Bank of Canada, Reserve Bank of Australia, and even China.

“It’s gonna end up very badly, but in the first half of this year, with everybody positioned negatively, I think we’re really set up for one last, what I call last hurrah on the market, that takes us to all-time highs, substantial all-time highs.”

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