Dave Collum: The Fed Can’t Save Us from a 70% Market Crash!

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Aug 25, 2025

Dave Collum, a contrarian investor and Cornell organic chemistry professor, shares his dire predictions about the fragility of today's markets. He warns of a potential 70% correction, comparing current mega-cap concentration to past bubbles. Collum critiques the Federal Reserve's inability to save us this time and emphasizes the dangers of passive investing amidst inflation. He advocates for a cautious approach, highlighting the benefits of T-bills and precious metals. The discussion also touches on the widening wealth divide and the need for prudent investment strategies.

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ANECDOTE

From Bonds To Gold: Collum's Personal Track

Dave shared his personal market arc from long bonds to dot‑com bull then out of equities before 2000.
He described buying gold starting in 1999 and compounding returns while avoiding shorting going forward.

INSIGHT

Markets Are Far Above Historical Norms

Valuations are historically extreme after decades of low rates and structural tailwinds that won't repeat.
Regression to the mean implies a 65–70% market correction is plausible from current levels.

INSIGHT

Indexing Removed Market Supervision

Passive indexing removes active 'adult supervision' from corporate governance and amplifies outflows.
Index redemptions force fund sales, making passive flows highly inelastic in stress.

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Contrarian investor and Cornell professor Dave Collum delivers one of his starkest warnings yet: the “everything bubble” has left markets more fragile than at any point in modern history, and the Fed can’t save us this time. In this explosive interview with James Connor, Collum explains why he believes the S&P 500 could face a 70% correction, and why the next downturn won’t be a quick “V-shaped recovery.”

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Chapters:

1:49 - Market Euphoria: How Worried Should We Be?

8:34 - Déjà Vu 1999: Are Mega-Caps the New Bubble?

15:47 - If the Bubble Bursts: How Ugly Could It Get?

20:07 - Central Banks to the Rescue? Why “Different This Time” Might Be Dangerous

25:23 - Powell vs. Politics: Who Really Runs the Fed?

26:57 - The Crash Trigger: Higher-for-Longer Rates

32:35 - Economic Illusion: Strong Headlines, Weak Reality

39:30 - From Chemist to Mayor? Dave’s NYC Politics Curveball

40:23 - Banks Soar, Canada Slows: What’s the Disconnect?

46:29 - ⭐️Wealthion Golden Nugget - Dave’s Portfolio Playbook: T-Bills, Gold & Platinum

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