Financial markets expert Chris Vermeulen, founder of Technical Traders, warns of a potential 35-55% stock market correction.
In a recent interview on Sprott Money, financial markets expert Chris Vermeulen, founder of Technical Traders, sounded a note of caution for investors in 2025. Vermeulen, a seasoned technical analyst with over 20 years of experience, believes the stock market is “very close to a major market and economic peak,” and that a significant correction could be imminent.
“I think the SP 500 is probably going to have a very big correction,” Vermeulen stated in the interview. “I think there’s potential for the SP 500 to pull back from the all-time highs roughly about 35% to all the way down to about 55%.”
This potential market downturn, according to Vermeulen, could be triggered by a confluence of factors, including a divergence between the overall market and the performance of dividend-paying stocks. “The dividend stocks are where the majority of investors in the United States have their money… and when they start selling it’s a… very big deal,” he explained. “This is a there’s big Divergence here these dividend stocks are selling off in a big way that means a lot of fund managers a lot of Savvy investors are unloading and getting out of this Market where the majority of the the money is because I think they see m music coming to an end.”
Gold as a Safe Haven
In light of these potential market risks, Vermeulen highlighted the role of precious metals, particularly gold, as a crucial portfolio hedge. “,” he said. “Gold moves percentage wise very slow so you could put a lot of money there and not be sweating bulletsI think gold and and is going to kind of be that safe haven play where it could drift up and test these highs maybe make nominal new highs over the next month or two especially with Trump coming in there’s a lot of uncertainty going on and when people are uncertain they kind of move away from stocks and they move into things that kind of outside of the financial system.”
Vermeulen further emphasized the inherent value of physical gold, stating, “basically every ounce that’s ever been mined is still around… it’s the ultimate currency.”
Silver’s Potential
While acknowledging gold’s potential, Vermeulen also pointed to the upside potential for silver. “Silver has pretty good upside potential compared to gold in terms of percentage wise I think it could rally eight to potentially like you know 14% back up to those highs fairly easily,” he said.
Vermeulen’s analysis underscores the importance of diversifying portfolios and considering alternative assets like precious metals in the face of potential market volatility. While past performance is not indicative of future results, his insights provide valuable food for thought for investors navigating the complexities of the current market environment.
