#389 Larry McDonald: A Market 'Rotten to the Core,' Gold to $6,500, and The Coming Credit Crisis
About this episode
Larry McDonald discusses the impending market shifts and investment strategies amidst economic challenges.
New York Times’ bestselling author Larry McDonald, founder of The Bear Traps Report, returns to The Julia La Roche Show to lay out why he believes markets are entering a major regime shift. He points to a historic rotation out of mega-cap tech — roughly $2 trillion has already exited the "Mag 7" since October — as sophisticated institutional investors grow wary of unsustainable AI/data-center capital expenditures and the off-balance-sheet financing propping them up. McDonald warns of a coming credit crisis driven by private credit weakness and commercial real estate stress, while arguing that Washington's stablecoin push and "financial repression" tactics are being used to force more Treasury buying and inflate away the $39 trillion national debt. With sticky inflation, midterm election risk, and a volatile August-September seasonal pattern ahead, he's positioning in hard assets — gold (targeting $6,500), silver, natural gas, and select energy names — as the trade of the next several years, while sounding the alarm on an S&P 500 he calls dangerously concentrated in tech. Thank you to our sponsors: Kalshi - download the Kalshi app and use code JULIA to get…
People in this episode
Host: Julia La Roche
Guest: Larry McDonald
Topics covered
- market analysis
- credit crisis
- gold investment
- economic trends
- real estate stress
- inflation
Keywords
- market regime shift
- credit crisis
- gold price
- inflation
- real estate
- investment strategy
- Treasury buying
Sponsors
Kalshi, Monetary Metals
Mentioned in this episode
Organizations: The Bear Traps Report
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- #390 Ted Oakley: "It's Not a Normal Market" — A Generational Bear Could Cut Stocks 40%
- #388 Chris Whalen: One Rate Hike Coming, Iran Peace Unlikely, Double-Digit Inflation Inevitable
- #387 Danielle DiMartino Booth: No Rate Hike Coming, Labor Force Participation Collapsing, Stock Market Too Big To Fail
- #386 Michael Every: Economic Statecraft Changed Everything, Old Playbook Is Dead, New Era Begins
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