The stock market may fall sharply over the next two months, believes Larry MacDonald, a respected expert and founder of the investment company The Bear Traps Report. The reason lies in the fact that investors ignore the significantly increased credit risk after the collapse of banks and invested in the securities of companies engaged in developments based on artificial intelligence. However, the losses that banks incurred against the background of the Fed's rate hike and the subsequent sharp decline in the price of debt securities are very high, he notes. This is reported by investing.com with reference to Business Insider.

The expert warns that the likelihood of a collapse or a sharp sell-off in two months is now the highest since the pandemic crisis, as indicated by more than 20 indicators used by his company. However, the stock market tends to underestimate risk in times of turmoil and focus on extraneous things - the dot-com boom of the 1990s and artificial intelligence now, the guru states.