The Julia La Roche Show #281 Peter Grandich: The Stock Market Is 'Very Vulnerable' To A Crash Or Hard Fall, More Concerned Than 1987, 1999 or 2007
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Aug 15, 2025 Peter Grandich, a Wall Street veteran with over 40 years of experience, shares stark warnings about the stock market, expressing greater concern now than during past crashes. He discusses the 'K-economy,' where wealth is heavily concentrated among the top 10%. Grandich emphasizes the risks posed by passive investing and highlights the looming threat of de-dollarization amid ongoing trade wars. With rising economic and political tensions, he advocates for gold and international investments, cautioning that traditional strategies may not suffice in the face of potential downturns.
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Market Vulnerability And Melt‑Up
- Peter Grandich warns the stock market is in a vulnerable final melt-up stage and could suffer a hard fall.
- He cites economic, social, and political deterioration as reasons to avoid starting a broad US equity portfolio now.
K‑Shaped Economy And Risk
- Grandich describes a K-shaped economy where the top 10% hold 86% of assets while the bottom 50% own almost nothing.
- He warns this inequality creates social strain that eventually drags down top‑tier gains.
Passive Funds And Algorithmic Narrowness
- Market structure shifted: passive funds now exceed half of market assets and algorithmic trading drives much activity.
- Grandich argues this creates a self‑reinforcing rally and narrows leadership, increasing crash risk when flows reverse.
