Peter Grandich, veteran of 40+ years on Wall Street, delivers his most dire warning yet, saying he's more concerned than during the 1987 crash, dot-com bubble, or 2008 financial crisis due to deteriorating political, social, and economic conditions. He describes a dangerous "K-economy" where the top 10% own 86% of assets while the bottom 50% use credit cards for basic necessities, creating fertile ground for socialist candidates. Grandich warns markets are in a final melt-up phase driven by passive investing and computer trading, with no political cohesion to address the next crisis. He favors gold and international stocks over US equities, predicts Trump's trade war will accelerate de-dollarization, and expects Fed rate cuts won't help if long-term rates stay elevated due to massive deficit spending.
Sponsor:
Monetary Metals. https://monetary-metals.com/julia
Timestamps:
0:00 Welcome and intro
1:12 Big picture outlook - fourth time in 42-year career being this concerned
3:04 K-economy explained - top 10% own 86% of assets, bottom 50% struggling
6:53 Market structure changed - passive investing and computer trading dominate
11:46 Trade war concerns - big stick vs olive branch approach
12:58 Fed rate cuts coming but long-term rates may stay higher
17:58 Significance of rate dynamics - mortgages tied to long-term rates
21:26 1987 crash call - how he got the "Wiz Kid" nickname
22:45 More concerned than ever - political, social, economic factors all worse
26:12 Socialist candidates emerging - wealth inequality driving politics
28:26 CPI manipulation - removing long-term care costs from index
32:36 Investment allocation - favoring gold and international stocks
34:28 Gold thesis - not early anymore but still has upside
35:27 Critical minerals shortage - AI needs metals we don't have
38:07 Faith-based perspective - Catholic faith guides decisions
41:33 Trade war will backfire - accelerating de-dollarization
Links:
https://x.com/PeterGrandich
https://petergrandich.com/
https://www.amazon.com/Confessions-FORMER-Wall-Street-Whiz/dp/B096LPRYW6
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