Market 'Melt Up' Will Continue Until Late Summer, Before Onset of 'Global Deflationary Bust'
David Hunter, chief macro strategist at Contrarian Macro Advisors, has for some time predicted a final "melt up" stage of the market cycle before markets crash. This stage is now underway as markets recover from an initial sell-off caused by the coronavirus (which Hunter admits he did not and could not have predicted). What comes next is a "secular top that I expect to be the high-water mark for decades to come," he says. After markets peak around late summer, a "global deflationary bust" will ensue, with as much as 80% downside for equities. Content: (Spotify users can click on the timestamp to link to the segment directly): Target of 4,000 for the S&P as part of "the final melt up" (2:23) The downside target. Forget the "reset narrative" in the short term (10:39). Markets should drop by 80% from the top (11:58) Unprecedented leverage doesn't leave policymakers much time (14:09) Background on David: 47 years in financial markets (18:46) The current crisis in historical context (26:35) Deflation allows for liquidity injections. Until it creates inflation (32:01) Discussing the potential political and social fallout from the coming economic crisis (36:12) How deflation will eventually turn to inflation (40:20) Discussion of the U.S. dollar's reserve currency status (45:56) Bullish outlook for gold and silver (51:37) For more information on the guest: Twitter: @DaveHContrarian LinkedIn Not intended as investment advice.