Larry McDonald: Investors Fleeing U.S. Markets - Where the Smart Money Is Going | Part II

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Apr 4, 2025

Larry McDonald, founder of The Bear Traps Report, warns that U.S. sanctions are driving global central banks toward gold, signaling a structural decline of the dollar. He discusses how the S&P 500 might plunge as capital shifts to precious metals and emerging markets. Jonathan Wellum adds insights on maintaining significant cash reserves, investing wisely in royalty companies, and the broader implications of potential recession. They also explore reshoring and the economic impact of Trump's policies on the U.S. market.

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INSIGHT

Central Banks Diversify

Central banks are diversifying away from U.S. treasuries due to sanctions and tariffs.
They are moving towards gold and other assets as alternatives to the dollar.

INSIGHT

Undervalued Assets

Gold miners are currently undervalued, presenting a buying opportunity.
Oil services companies like Weatherford offer high free cash flow yields and buybacks.

INSIGHT

Dollar and Commodities

A strong dollar creates a bear market in commodities, discouraging investment.
As the dollar weakens, interest in commodities like gold increases.

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Are the U.S. and global markets on the edge of a massive regime change? In this high-impact Part II, The Bear Traps Report founder and bestselling author Larry McDonald shares with James Connor a dire warning: U.S. sanctions and Trump’s tariffs are forcing global central banks to ditch U.S. treasuries for gold, the dollar is entering a structural decline, and a coming economic slowdown could pull the S&P 500 down to the low 4,000s. He breaks down where capital is headed and why gold, silver, oil, and emerging markets will be the big winners.

Then, Rocklinc’s Jonathan Wellum shares his thoughts on Larry’s interview and his firm’s portfolio strategy. He explains why he holds nearly 30% cash, favors investing in royalty companies over miners, and avoids European exposure in favor of select value stocks.

The conversation also tackles reshoring, structural inflation, Trump’s likely economic pivot, and what investors should do now to prepare.

Chapters:

0:24 - Golden Rush: Is It Time to Bet Big on Precious Metals?

1:37 - Sanction Shockwaves: Why Central Banks Are Forced into Gold

2:25 - Mining for Value: Gold Stocks Trading at Bargain Prices

3:29 - The Gold Paradox: Why Aren’t Miners Keeping Up?

5:27 - Silver’s Great Frustration: Will It Ever Shine Again?

6:57 - What’s Next for the Fed Under Trump?

8:07 - Dollar in Decline: Is the US Currency Losing Its Grip?

9:48 - America’s Manufacturing Meltdown: Jobs Gone Overseas

10:26 - Recession Red Flags: Preparing for the Big US Slowdown

11:16 - Canada: Emerging Market or Economic Misstep?

12:22 - Wall Street Secrets: Behind the Scenes with Top Investors

14:53 - Jonathan Wellum Shares His Thoughts On Larry’s Insights

19:35 - Investing in Uncertainty: Picking Winners and Holding Cash

24:22 - Crash or Correction? Predicting the Next Market Move

26:09 - Canada’s Crossroads: Critical Election and Economic Realities

If you missed part I of this insightful interview, watch it here: https://youtu.be/BAAobevohdI

Investment Concerns? Get a free portfolio review with Wealthion’s endorsed financial advisors at https://bit.ly/41WYWTY

Hard Assets Alliance - The Best Way to Invest in Gold and Silver: https://www.hardassetsalliance.com/?aff=WTH

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