In his latest analysis, the economist discusses the current state of the U.S. economy and warns of a potential crisis.
General Trends in the U.S. Economy
Economist McGlone suggests that the U.S. economy might be heading towards a breaking point due to political and economic tensions, particularly surrounding the renewed trade war driven by President Trump's tariffs.
Historical Comparisons and Possible Scenarios
McGlone points out that current valuations, such as the S&P 500 relative to GDP and gold, are at levels akin to those seen before major collapses like the Great Depression and the 2008 financial crisis.
Implications for Various Assets
McGlone predicts that if current trends persist, it could lead to significant declines in stock prices and commodities. He envisions oil falling to $40 per barrel and Bitcoin dropping to $10,000.
McGlone emphasizes that historical patterns show markets tend to revert to long-term averages, and this process may already be in motion.
