Season 2, Episode 12: Market ‘Melt Up’ Will Continue Until Late Summer Before Onset of ‘Deflationary Bust’

With David Hunter of Contrarian Macro Advisors

David Hunter, chief macro strategist at Contrarian Macro Advisors, has for some time predicted a final “melt up” stage of the market cycle before markets crash.

This stage is now underway as markets recover from an initial sell-off caused by the coronavirus (which Hunter admits he did not and could not have predicted).

What comes next is a “secular top that I expect to be the high-water mark for decades to come,” he says. After markets peak around late summer, a “global deflationary bust” will ensue, with as much as 80% downside for equities.

Prefer to read the transcript of this talk? Become a premium subscriber to get access. Sign up now with a special discount that will expire soon.

Content:

Target of 4,000 for the S&P as part of “the final melt up” (2:23)

The downside target. Forget the “retest narrative” in the short term (10:39). Markets should drop by 80% from the top (11:58)

Unprecedented leverage doesn’t leave policymakers much time (14:09)

Background on David: 47 years in financial markets (18:46)

The current crisis in historical context (26:35)

Deflation allows for liquidity injections. Until it creates inflation (32:01)

Discussing the potential political and social fallout from the coming economic crisis (36:12)

How deflation will eventually turn to inflation (40:20)

Discussion of the U.S. dollar’s reserve currency status (45:56)

Bullish outlook for gold and silver (51:37)

Quick Highlights From Our YouTube Channel

For more information on the guest:

Not intended as investment advice.