The David Lin Report The ‘Lose-Lose’ Economy: Why Both Bulls And Bears Could Suffer | Mike McGlone
Jul 2, 2025
Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, shares his keen insights on the current economic landscape. He highlights signs of an overvalued U.S. stock market, forecasting a deflationary trend for oil and Bitcoin. McGlone forecasts gold soaring to $3,500, indicating looming economic trouble. He delves into the relationship between asset prices and deflation, and analyzes the interplay between crude oil dynamics and global economic pressures. Expect caution when navigating today’s volatile markets.
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Overvalued Stocks Amid Slowing Growth
- The U.S. stock market is overvalued amid slowing economic growth and falling personal income.
- This creates a "lose-lose" scenario where rising markets contradict economic fundamentals and increase inflation pressure.
Gold as Economic Indicator
- Inflation rates are expected to rise modestly into year-end, not supporting Fed rate cuts.
- Gold's rise to $3,500 could signal economic trouble rather than inflation.
Oil's Deflationary Pressure
- Crude oil prices face deflationary pressure due to excess supply and reduced demand, especially from China.
- Oil may drop to $40 per barrel, reflecting normal commodity cycles and advancing technology like EVs.