Chris Vermeulen Reveals Start of ‘Economic Downturn’: Over Half of Americans Hold Less Than $2,000 in Bank Accounts

In a recent interview with David Lin, Chris Vermeulen, the Chief Market Strategist of The Technical Traders.com, shared his insights on the current state of the market. According to Chris, it appears that we are entering a phase where the market is reaching its peak. He explained that the market typically goes through four stages, and although he didn’t go into detail about all of them, he believed that we are currently in this topping phase. He observed that certain assets are gaining momentum and there is a shift in dynamics.

Chris also pointed out that broader economic indicators, such as unemployment rates surpassing the 24-month moving average, have historically been precursors to financial corrections or crises. Rising unemployment is often a signal of tough economic times ahead. He expressed concern about a trend he had mentioned months ago, where despite inflated prices and inflation, people are still spending, potentially leading to financial strain.

The situation is worsened by the fact that many Americans have minimal savings. As more people face unemployment, the number of individuals running out of money is expected to increase. Statistics reveal that 52% of Americans have less than $2,000 in their bank accounts at any given time, highlighting the precarious financial situation of many.

Chris also highlighted a shift in savings patterns. While there was a surge in savings during the COVID-19 pandemic, people are now turning to credit card debt as they deplete their savings. He believes that this shift could be the beginning of a significant economic downturn.

“Perhaps people are spending money, which is why their savings rate is decreasing. It’s important for consumption to pick up, especially since nobody was spending money during the pandemic due to lockdowns. This had a negative impact on the economy. On the other hand, you’re right, they might not have money to spend, so they have to rely on their credit cards,” Chris explained. He also mentioned that delinquency rates on credit cards are on the rise and are currently at the highest level since 2011.

In other news, the Bitcoin ETF has seen a record-breaking $886 million inflow, causing the price of BTC to skyrocket ahead of the Fed meeting.