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By Chris Bohnberg | Business Insider A day before the Federal Reserve is expected to raise interest rates, CNBC’s John Harwood is predicting a major rally in stock markets.

Harwood says that even as the Dow Jones Industrial Average plunged by 7.8 percent to 2,827.50, the S&P 500 rose by 5.7 percent to 1,869.80.

It’s a “good day” for stocks, Harwood said.

Harth is also bullish on emerging markets, and says China is “on the rise,” while the U.K. is “still a very much a work in progress.”

Here’s how Harwood sees it: “There’s a lot of bullishness in markets.”

And it’s not just about the market, either.

“There are a lot more things going on than just the markets.

People have been losing money,” Harwood added.

He says the stock market is in “a bubble.”

The Dow is down more than 400 points since its start on Dec. 18.

The S&P 500 is down nearly 8 percent.

That means the Dow has lost about $2.5 trillion since its record high on Dec 18, 2014, according to data from FactSet.

The Dow has been trading at the all-time high since January 20, 2018.

Harridge says he has a pretty good sense of what’s going on.

He has a “well-informed understanding” of the market.

It will get a lot worse.

The stock market will get hurt in the next couple of years.

The reason is that the Federal Open Market Committee, which has been trying to maintain the current low interest rates and slow economic growth, is going to have to take drastic measures to stimulate growth.

The Fed’s policy is to keep interest rates low, Harridge said.

The markets are expecting an increase in interest rates.

But Harwood believes they will have to go way higher.

He said, “I think the Fed is going be forced to raise rates, but not by the rate of inflation, but the rate at which the economy gets bigger.”

Here’s the full interview with Harwood: