A growing number of warning signs in the U.S. stock market indicate that the S&P 500 index appears to have reached its speculative peak, famed bear and hedge fund manager John Hussman wrote on Monday. His words are reported by Business Insider.

The expert predicts the collapse of the index by 50%-70%, despite the optimistic forecasts of Wall Street analysts. He bases his point of view on many market "red flags", one of which is negative leadership at the five-year high, when stocks more often update lows than highs. This indicator is useful on its own, but when combined with other warnings, it becomes an important signal.

On Friday, the number of "warning signals" in the daily data exceeded the levels seen in 2000, 2007, late 2018 and early 2020, all of which were crash-related. According to Hussman, current stock valuations, which are even higher than they were in 1929, represent a long-term risk. Hussman added that a correction may not be instantaneous.