AI and broader equities face dot-com style collapse
The guest argued that the S&P 500 and Nasdaq are at a major market top, with AI stocks being vastly overpriced and vulnerable to a dot-com style collapse.
The argument
The guest noted that historical rate cuts (in 2001 and 2007) failed to stop massive equity bear markets, and argues that even if AI technology is revolutionary, its current valuation makes it highly dangerous. He suggests a spread trade of shorting the S&P 500 while going long silver.
The thesis, stress-tested
✓ What validates it
- ✓S&P 500 breaking key technical support levels
- ✓The Federal Reserve cutting rates while equity markets continue to decline
▸ Risks discussed
- ▸Hyperinflationary 'Weimar' scenario where nominal stock prices rise purely due to currency degradation
Hear it yourself
"Michael Oliver, financial analyst and founder of Momentum Structural Analysis. It is a true pleasure to host you on Palisades Gold Radio today. Glad to be back. Excellent, Michael. The bookcase for gold seems to be stronger than ever and we find ourselves going right through the middle of possibly the largest supply commodity flow disruption in history. Now, Michael, as your strategy is uniquely focused on the long term and momentum, I would love to hear what is catching your eye currently. Perhaps something that anyone who's following the fast paced news cycle might be missing."
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