Forward Guidance BOTTOM IS IN, Says Trader Who Predicted The Crash | Mel Mattison
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Apr 16, 2025 
Mel Mattison, an insightful author and fintech executive, shares his expertise on macroeconomics and market predictions. He argues we're nearing another inflationary bubble and discusses the growing risks of entitlement obligations. Mel predicts gold prices could skyrocket to $50,000/oz and explores the implications of yield curve distortions on markets. He also highlights the challenges of sovereign debt and strategies for navigating the complexities of current financial landscapes, including the potential impact on the FX market.
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Market Correction Prediction
- Mel Mattison predicted a 15-20% market correction in December/January, foreseeing overvalued equities and a need for global portfolio reallocation.
- This prediction proved accurate, with markets behaving as anticipated, and Mattison maintains a bullish outlook for the rest of the year.
Fiscal and Monetary Dynamics
- Fiscal dynamics point towards increased deficits, not austerity, as government spending remains high and entitlements are politically untouchable.
- This fiscal impulse, coupled with a depreciating dollar, is expected to drive nominal GDP and equity earnings growth.
Nominal vs. Real Growth
- Equity markets are priced in nominal terms, and a depreciating dollar boosts overseas revenues, leading to higher equity prices.
- However, real growth may not materialize, and this nominal growth is driven by inflation, impacting real value in gold terms.