As the U.S. stock market is booming, David Hunter, chief macro strategist at Contrarian Macro Advisors with 48 years of market experience, warned this week that inflation will last longer than expected, causing the Fed to be forced to tighten the currency. The policy will cause US stocks to plummet by 65% to 80% before the end of this year.

Hunter predicts that the S&P 500 Index will peak around July or August. After the peak, it may challenge a new high again. However, as the fall approaches, the S&P 500 Index will start near a high of 4500 points. Tumbled, with a drop of about 65% to 80%.

Hunter said that the catalyst for this catastrophic crash will be inflation, because the Federal Reserve underestimated the extent of inflation and how long it will last, and the increase in fiscal expenditures and the printing of money have made inflation worse.

Hunter believes that when inflation continues to rise, the Federal Reserve is in favor of debt collection to tighten monetary policy, reducing the rapid balance of assets by reducing the amount of purchases, and this will delete market liquidity. Hunter predicted in May this year that the Federal Reserve may withdraw as much as $1 from its balance sheet.

Hunter warned: "Thinking that we can consume like a drunk sailor without any responsibility for inspections is bringing the market to the future."