Although many people would disagree with James Stack who claims that housing industry represents a bubble and that it is very likely that the bubble will soon pop like it was the case back in 2008 when the entire market collapsed, Stack still stands by his prediction.
The fact that spring sales that usually affect the housing market in a positive way are getting closer, market crash predictions by the 66-year-old broker who managed billions of dollars for his clients seem unrealistic to the majority of investors.
However, many analysts and market watchers are agreeing with Stack, making their own predictions regarding the time when another market crash will take place on the head with the presumably popping bubble represented in the housing sector.
Is James Stack Right About the Next Market Crash Prediction?
James Stack has been recognized as one of the top financial advisers in the US, and is also known by predicting the market crash in 2008 already back in 2005 as he noticed red flags even before the prices reached their peak.
According to Stack, the system he calls Housing Bubble Bellwether Barometer is indicating that the market ay be in for another crash given the fact that valuation in the market, alongside the general denial and psychological excess that in accordance with this experienced financial advisor resembles 2005 case.
The current housing prices and low interest rates are said to be some of the red flags indicating that the market is about to crash, according to Stack, however, many analysts consider that the housing market will continue with the 6-year-long recovery.
Stack also added that the US Federal Bank is predicting three additional increases in interest rates, which should end in a horrible way for the housing market once these increases take place in the upcoming period.
According to Stack, the housing market should go down with the next recession as the deficit in the budget of the US is slowly inflating.
Still, Mr. Stack seems to be a minority among the market watchers as the majority of analysts doesn’t share his opinion on the housing market estimates.