According to BlockBeats, on July 27, Alasdair Macleod, senior macroeconomist and head of research at Goldmoney, warned that the current valuation bubble in the U.S. stock market may have exceeded that of the period before the Great Depression of 1929, and that the financial market is facing the risk of an "ultimate total crash".
Macleod stated that the imbalance between supply and demand in the US Treasury market, reduced allocations by overseas buyers, and rising US debt pressure could drive US Treasury yields higher, ultimately impacting US stock valuations. He believes that if market confidence reverses, the S&P 500 could face a value retracement of over 90%.
The US debt continues to climb, and the country may face financing and refinancing pressures of approximately $10 trillion to $11 trillion over the next 12 months. With fewer buyers of US Treasury bonds, the Federal Reserve may be forced to stabilize the market through balance sheet expansion and money printing, further weakening the purchasing power of fiat currency.
Macleod argues that modern financial assets are inherently dependent on the credit system, and that stocks, bank deposits, and US dollar cash all carry a certain degree of counterparty risk. In contrast, gold and silver, as physical assets that do not rely on government credit, may become safe-haven options in extreme financial risk environments.