US stock market bubble could surpass 1929; the S&P 500 may face an extreme correction; gold and silver become safe-haven assets

On July 27, veteran macroeconomist and Goldmoney research director Alasdair Macleod issued a warning, saying that the current level of valuation bubble in the US stock market may already have exceeded that seen in the run-up to the 1929 Great Depression, and that financial markets are facing a risk of an “ultimate total crash.”
Macleod said that an imbalance in supply and demand in the US Treasury market, a decrease in overseas buyers’ allocations, and rising pressure from US debt could push US Treasury yields higher for a sustained period and ultimately hit US stock valuations. He believes that if market confidence reverses, the S&P 500 index could face a value drawdown of more than 90%. US debt continues to climb, and over the next 12 months it may face around $10 trillion to $11 trillion in refinancing and re-financing pressure. As Treasury buyers decline, the Federal Reserve may be forced to stabilize the market through balance-sheet expansion and money printing, further weakening the purchasing power of fiat currency. Macleod believes that modern financial assets fundamentally rely on the credit system: stocks, bank deposits, and USD cash all carry some degree of counterparty risk, while gold and silver, as physical assets that do not depend on government credit, could become a safe-haven choice in an extreme financial risk environment. #美股 #纳斯达克 #股市