A well-esteemed analyst in the area of macroeconomics Henrik Zeberg feels the economy has hyperinflated to the point of a situation he refers to as an “everything bubble” that will supposedly expand even further.
Meanwhile, he insists on his forums on Zs that the bubble of the economy is not yet in its highest point.
Zeberg highlighted market capitalization to GDP ratios from previous bubles:
1929: 105%
2000: 138%
2007: 105%
Current: 188%
He also underlined the growth of the Crypto and Private equity bubbles, claiming the outcome that the next recession would blow up the “everything bubble.”
The private investment arena has been extraordinary over ten years rising from $9.7 trillion AUM in 2012 to $24.4 trillion last year, according to Ernst&Young.
Besides that, Zeberg states that as a rule, central banks, for example the Federal Reserve and the European Central Bank (ECB), generally lower their rates prior to a recession. He raises the issue of whether the recent interest rate cut by the ECB indicates that the quarter is at the end of the economic expansion cycle than a beginning of a new cycle.