Both S&P and Nasdaq Are Done | Michael Oliver and Jimmy Connor
Mar 13, 2025
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Michael Oliver, a market expert from Momentum Structural Analysis, predicts significant downturns for both the S&P and Nasdaq, suggesting a loss of up to 50% in the next few years. He discusses the interconnected vulnerabilities in the tech sector, notably NVIDIA, and highlights gold as a safe haven investment gaining traction during stock volatility. Oliver also speculates on potential economic shifts related to taxation and the impact of the Fed's actions, all while raising concerns over an impending bear market.
Both the S&P and Nasdaq are expected to enter a bear market lasting two to three years, with potential declines of 50% and more.
Investors should consider reallocating to gold and other commodities as safe havens against anticipated market instability and downturns.
Deep dives
Market Overview and Bearish Sentiment
The S&P and NASDAQ have both reached significant peaks, indicating a potential onset of a bear market. Historical analysis of market trends suggests that bear markets typically last two to three years, pointing towards a prolonged decline potentially resulting in a 50% drop in the S&P. Unlike previous market corrections that may have shown swift recoveries, the current sentiment predicts a series of contended rallies followed by further declines, with Michael suggesting that any bounces should be viewed as opportunities to sell. This structural break in momentum, particularly in key indices, marks a markedly different trajectory compared to earlier market recoveries.
Gold and Safe Havens Amid Market Turmoil
Investors are encouraged to consider gold as a key asset during periods of stock market instability, with predictions of a significant increasing trajectory for its price. Historical trends indicate that when major market bubbles burst, capital tends to flow into gold, enhancing its market strength. Currently, gold has been steadily increasing, outperforming the S&P, which positions it favorably as market conditions worsen. The accelerated interest in gold is expected to continue, driven by asset reallocations and central bank reactions to turbulent economic landscapes.
Challenges for Risk Assets and Cryptocurrencies
Risk assets, particularly cryptocurrencies like Bitcoin, are expected to experience severe downturns similar to past technology bubbles. With Bitcoin already showing significant declines, analysts predict that a widespread market collapse could see digital currencies lose substantial value. The interconnectedness of these assets with the NASDAQ suggests a collective decline, urging investors to consider the volatility associated with cryptocurrencies. Such a collapse could lead to a major disruption within the crypto market, creating broader implications for financial stability.
Investment Strategies and Economic Outlook
In light of the anticipated market downturn, investors are advised to diversify their holdings, focusing on commodities and alternatives like bonds alongside gold. The likelihood of commodities appreciating in value supports the argument for investing in related sectors, despite bearish sentiment in the traditional equity market. Broader economic pressures, including potential shifts in government policy on taxes and spending, could further influence investment strategies. The forward-looking perspective emphasizes the need for strategic positioning as market dynamics evolve, especially as safe havens become increasingly relevant.
Michael Oliver of Momentum Structural Analysis confirms both the S&P and Nasdaq have topped and are beginning a long journey downward. Michael believes the S&P will loose 50% over the next 2 to 3 years and the Nasdaq will significantly more. WAIVER & DISCLAIMERIf you register for this webinar/interview you agree to the following: This webinar is provided for information purposes only. All opinions expressed by the individuals in this webinar/interview are solely the individuals’ opinions and neither reflect the opinions, nor are made on behalf of, Bloor Street Capital Inc. Presenters will not be providing legal or financial advice to any webinar participants or any person watching a recorded version of the webinar. The investing ideas and strategies discussed on this webinar/interview are not recommendations to buy or sell any security and are not intended to provide any investment advise of any kind, but are made available solely for educational and informational purposes. Investments or strategies mentioned in this webinar/interview may not be suitable for your particular investment objectives, financial situation, or needs. You should be aware of the real risk of loss in following any investment strategy discussed in this webinar/interview. All webinar participants or viewers of a recorded version of this webinar should obtain independent legal and financial advice. All webinar participants accept and grant permission to Bloor Street Capital Inc. and its representatives in connection with such recording. The information contained in this webinar/interview is current as of March, 2025 the date of this webinar/interview, unless otherwise indicated, and is provided for information purposes only.
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