Dan Morehead Predicts Stock Market Crash, Says Crypto To Outshine Equities, Real Estate and Bonds

Pantera Capital founder Dan Morehead is forecasting an incoming correction in equities markets and a relative outperformance of crypto property.

Morehead says through social media platform X that he believes the S&P500 is “massively overvalued” and due for a 23% fall.

The investor, who oversees $4.2 billion value of property at Pantera, says the Federal Reserve will doubtless need to proceed elevating rates of interest within the face of surging wage inflation and a wave of staff strikes throughout the US.

He says a continued mountain climbing schedule from the Fed will overwhelm on shares, bonds and actual property, so a “best-case scenario” would solely be for costs to stay flat for a while.

What’s extra doubtless, nevertheless, is a sizeable correction within the S&P 500 and an underperformance of equities, says Morehead.

“One other potential consequence is a really lengthy interval of flat costs. There are two intervals of roughly 13 years that shares didn’t go up:

Aug 2000 – Feb 2013
Nov 1968 – Aug 1982

That’s sort of like my ‘best case scenario.’

After which to finish the eventualities, I can undoubtedly see an opportunity that equities revert to the common fairness threat premium we’ve skilled in environments like this – rising charges.

These two intervals averaged +2.25% above bond yields. If equities repriced to that, they might fall 43%.

My central forecast is in gold under.”

Supply: Dan Morehead/X

The investor says that whereas shares and different threat property are doubtless due for a stagnant interval, crypto and “real commodities” may very well be what outperform throughout that point.

“So what does this imply for blockchain property?

We speak to asset allocators on a regular basis. If you happen to’re considering of placing cash to work in bonds, I believe that’s fairly harmful. Real property is coming off all-time highs. Equities are overvalued. That does go away a few asset courses, like actual commodities and blockchain property.

Blockchain is a trillion-dollar asset class. Most establishments have primarily zero publicity proper now. I imagine they need to dial it up to a few %.”

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