Wall Street experts warn of US recession despite stock market rally

The U.S. stock market is less than 1% away from new record highs, but leading economists and financiers on Wall Street are warning of a bleak outlook for the U.S. economy, Business Insider reports.

Wall Street veteran Gary Shilling, who identified the real estate bubble in the 2000s, estimates that the States will be in recession by the end of this year, if it hasn't already begun. The labor market is weakening, which will scare off investors and trigger a 30% market crash. However, players are overconfident - such a mood is usually corrected harshly, the expert noted.

Head of Hussman Investment Trust John Hussman, who correctly identified the dot-com bubble and the housing market crash in the noughties, warned that the S&P 500 is now at the same extreme levels seen before the Great Depression of 1929. Beyond that, its 65% crash is quite possible, which would offset the stock market's 10-year rise.

Leading economist David Rosenberg, who predicted the 2008 recession, advises against complacency - the weakening U.S. labor market indicates that a recession is not as far away as many people think.