David Hunter: Big Moves Are Coming For Gold and Silver
Gold and silver peaked in 2011, since then we’ve been in a long consolidation period. He is very bullish on gold, and he is calling for $1550 for gold and Silver to $26 by mid-year. The dollar is likely to roll-over soon, and he expects the US dollar index to decline to around 86.
He believes that 2019 will be a year of extremes for the broader markets in that there will first be a melt-up and then later in the year a meltdown. There is a lot of excesses in the market, and inevitably there will be a big bear market. Many hedge funds are waiting for a re-test of the bottom before redeploying their capital. However, as we approach the old highs, there will likely be a multi-month buying panic. He expects 3500+ on S&P this year and a final blow-off secular peak.
There are a lot of risks out there, some that we have not seen in the history of markets. Derivatives build up is uncharted territory. Once it starts unwinding it could be quick and fierce in the latter part of this year. A global deflationary bust is coming which will be severe. It will be a lot like 2008 but on steroids. This year will be one hell of a ride and not all of it fun.
He expects the bond market will be quite bullish this year and perform quite well. However, he thinks an inflation period like the 1970s will begin in 2020. He cautions investors that some popular narratives will turn out to be entirely wrong.
Talking Points From This Week’s Episode
• He predicts $1550 for gold and $26 for silver this year.
• This year will be one of extremes.
• This year will be one hell of a ride and not all of it fun.
• David discusses his career and his focus in markets.
• He is bullish on bonds for the next year.
David is Chief Macro Strategist with Contrarian Macro Advisors. He is an investment professional with 25 years of investment management experience and 18 years as a sell-side strategist with strong expertise in macroeconomic analysis and portfolio management. His strong macro capabilities combined with a contrarian philosophy have allowed him to forecast economic cycles and spot market trends well ahead of the consensus. Intellectually honest, independent thinker comfortable with charting a course apart from the crowd. Accomplished stock picker and value-oriented portfolio manager.