#261 Mel Mattison: "We're Just Beginning to Inflate" a Massive Asset Bubble - S&P 7000, Bitcoin $150K, Gold $3500

41 snips

May 28, 2025

Mel Mattison, a fintech executive with 25+ years in finance, argues we are entering a period of fiscal dominance where large deficits could inflate asset bubbles instead of crashing the economy. He predicts the S&P will soar to 7,000 by year-end and foresees Bitcoin reaching $150K and gold hitting $3,500. Mattison explains why fears regarding interest rates are misplaced, highlighting that most government debt is tied to short-term bills. With insights on investment strategies and macroeconomic trends, he suggests we're on the brink of a historic market shift.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

INSIGHT

Fiscal Dominance Fuels Bubbles

The U.S. is in fiscal dominance, with persistent large deficits fueling asset bubbles, not collapse.
Policymakers will use unconventional methods to sustain the economy and inflate market values.

INSIGHT

Salsa and Sour Cream Market Theory

Trump's policies contain both negative and bullish elements causing initial market pain followed by a strong rally.
Market will digest the mixed signals leading to a sharp recovery and equity rally by year-end.

ANECDOTE

Calling the Market Bottom

Mel raised cash and bought protective puts before market correction in early 2025.
He called the market bottom at 5,115 and went all-in, proving prescient so far in 2025.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Mel Mattison, a fintech executive with 25+ years in financial services, argues the U.S. is entering fiscal dominance where massive deficits will fuel asset bubbles rather than economic collapse. He correctly predicted the S&P's drop to 5,000 in early 2025 and expects it to reach 7,000 by year-end, driven by Trump administration policies that prioritize growth over spending cuts. Mattison believes the 10-year Treasury rate is irrelevant since 85% of government debt is issued in short-term bills tied to Fed funds, allowing borrowing costs to fall even as deficits rise. With 2025 targets of Bitcoin at $150K and gold at $3,500, plus S&P at 12,000 within years, he sees this as the beginning of the biggest asset bubble since the 1990s dot-com era.

Sponsors: Monetary Metals. https://monetary-metals.com/julia

Kalshi: https://kalshi.com/julia

Links:

X: https://x.com/MelMattison1

The 10 Year Ain’t What It Used to Be: https://x.com/MelMattison1/status/1922710289486627300

Website: https://www.melmattison.com/

Book: https://www.amazon.com/Quoz-Financial-Thriller-Mel-Mattison/dp/B0CV89VLMY

Timestamps:

0:00 Welcome and intro of Mel Mattison0:58 Background and macro framework3:15 Fiscal dominance and deficit spending reality5:37 Salsa and sour cream market theory9:11 Why markets will hit 7,000 by year end10:52 Calling the market bottom at 5,11512:22 Why rate fears are overblown16:10 Monthly treasury statement insights17:05 Budget surpluses signal collapse, deficits signal bubbles18:06 Riding the asset bubble strategy20:41 Government borrowing costs going down despite rising debt23:27 Policy makers have more rabbits to pull out24:04 USD printing machine philosophy26:57 S&P 12,000 target within few years28:32 Biggest asset bubble of our lifetime30:40 Bitcoin $150K and gold $3,500 predictions35:30 Federal Reserve rate cut forecasts38:52 Unlocking home equity through HELOCs42:06 Massive stimulus through front-end manipulation42:21 Trump's oil and energy strategy46:38 Fed funds as baby boomer stimulus53:13 Parting thoughts and where to follow