Moody's chief sounds the alarm: Market and economy are decoupling, a large-scale, all-asset sell-off is coming

Gelonghui, February 25th | Since the beginning of this year, the US stock market has been volatile, with investors concerned about a range of factors including tariffs and artificial intelligence. Moreover, Mark Zandi, Chief Economist at Moody's Analytics, believes that the situation could soon get even worse. Zandi's views usually focus more on the overall economy rather than the stock market. However, he stated that recent events have compelled him to issue a warning: if certain conditions persist, things could get really bad! "Sometimes I feel that the market is overreacting, becoming increasingly disconnected from the economy," Zandi added. "The market could experience significant volatility, with causality reversed, and falling asset prices could threaten an already fragile economy. That is the current situation." Zandi believes a dangerous shift is underway, putting many assets at risk of a sharp sell-off, which could pose a threat to both the real economy and Wall Street. He posted on social media platform X: "In my view, financial markets are becoming increasingly turbulent, and the factors for a large-scale sell-off are gradually forming. Stocks and corporate bonds face the greatest threats, and even though cryptocurrencies, gold, and silver have recently pulled back, they still face risks."