Global Stock Markets To Crash Soon, According to eToro’s CEO

Global equity markets have had a spectacular run following the crash in mid-March. The S&P 500 has almost fully recovered, while Nasdaq is already charting new all-time highs.

However, according to the CEO of the popular trading platform eToro, Yoni Assia, there’s a crash coming sooner than most expect it.

Wall Street’s Impressive Rally

At the beginning of this year, the novel coronavirus (COVID-19) started spreading beyond China and inevitably reached the US. Most countries instituted mandatory lockdowns, and entire industries were halted from regular operations, including travel, tourism, and many others.

The impact was felt almost immediately as global stock markets tumbled, recording losses not seen for decades.

Yet, governments around the world, including the US Federal Reserve, took actions, injecting trillions of dollars into the economy to stop the bleeding. And while many prominent economists and analysts were predicting a long-term crisis worst than that in 2018, the markets turned.

The S&P 500 has managed to recover almost entirely, while Nasdaq is already charting new all-time highs. In fact, it breached the 10,000 mark for the first time.

NASDAQ Composite and S&P 500 Performance YTD. Source: TradingView

Major technology, energy, and travel-related businesses see their stocks surge every day. One case was particularly impressive – that of Hertz Global Global Holdings.

As CryptoPotato reported yesterday, the company’s stock increased by about 1000% in a bit more than two weeks, even after filing for bankruptcy towards the end of May.

Global Stock Markets To Crash

As the charts continue to paint green, Yoni Assia, the CEO of one of the world’s largest trading platforms, eToro, warned investors of a potential crash.

He further clarified that “we will see a correction since this rally seems to be fueled by speculation of retail investors. Historically, these rallies end with a correction.”

Yoni Assia, eToro’s CEO. Image by: CryptoPotato YouTube

He also acknowledged another undeniable truth – that more “money is being printed in unprecedented amounts and interest rates are zero.”

Many believe that it’s precisely this type of infinitive money printing that’s propping up the markets and causing more retail investors to pile in. The CIO of Artemis Capital reiterated this, saying that “we went from a 2008 collapse to a 1999 stock bubble in under three months.”

The case that we pointed out above with Hertz Global Holdings is a prime example. According to a recent report, the number of people with Robinhood accounts, which is amongst the most popular tool for retail investors, who own shares of Hertz almost doubled last week.

Funnily, HTZ’s quick gains would make even 2017 crypto traders envious because of its unprecedented growth.

But it’s not just Hertz that’s popping. Another company called Fangdd, ticked DUO, also increased by almost 400% in a day without any news to back it up, according to Bloomberg.

Featured image courtesy of Globes

The post Global Stock Markets To Crash Soon, According to eToro’s CEO appeared first on CryptoPotato.

scroll to top