David Hunter: Volatile Selloffs Expected Before $10,000 Gold and $300 Silver
Tom welcomes back experienced investment professional David Hunter of Contrarian Macro Advisors to the show. David believes this cycle will end in a bust, something more significant than a deep recession but not a drawn-out depression. He anticipated a big run from the March lows and says we are poised for another big run soon into a top. He cautions that historic debt & derivative exposure will magnify market moves in both directions.
Momentum, further stimulus and a V-shaped second half recovery will combine to drive the market to its final top. However, much damage has been done and money alone cannot sustain a recovery. David expects a second phase of the bust in 2021 including a global financial crisis and a huge involuntary debt liquidation cycle.
He gives his expectations for oil, the U.S. dollar, gold, silver and the miners.
Time Stamp References:
0:40 – Defining a global bust.
2:00 – Where are we in the cycle.
3:45 – Derivatives and leverage.
6:01 – Price chasing and past trends.
11:40 – Triggers for the bust.
16:00 – Debt liquidation cycles.
18:50 – Outlook for the dollar.
22:00 – What this means for gold and silver.
27:00 – Miners and metal price moves.
Talking Points From This Episode
• Another market bull run before a bust.
• Derivatives and consequences of leverage.
• Markets will move higher into the fall.
• Expect a market bust in 2021 and a lower dollar.
• Targets for oil, gold, and silver.
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.