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Wealthion - Be Financially Resilient

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

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.
32:27

Episode guests

Jonathan Wellum
Larry McDonald

Podcast summary created with Snipd AI

Quick takeaways

  • Larry McDonald warns that U.S. economic policies are prompting central banks to diversify from treasuries to gold and commodities.
  • The podcast highlights the potential downturn in the S&P 500 due to economic pressures, emphasizing the need for investors to prepare strategically.

Deep dives

Impact of U.S. Economic Policies on Global Markets

The podcast examines how recent U.S. economic policies, particularly under the Trump and Biden administrations, have influenced central banks and their asset allocations. With increased hostility marked by sanctions and tariffs, many central banks are diversifying away from U.S. treasuries, turning instead to gold and other hard assets as a safeguard. As the U.S. dollar experiences fluctuations, particularly its strength against other currencies, countries are realigning their investments, with a notable shift towards commodities like gold and natural gas. This trend underscores a growing caution among emerging markets following a decade marked by aggressive U.S. foreign policies.

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