In a recent interview with Commodity Culture, Henrik Zeberg, a renowned macroeconomist and founder of The Zeberg Report, issued a stark warning about an impending market crash.
Zeberg, known for his accurate predictions, believes we are on the brink of a massive market downturn. He warns that gold, often seen as a safe haven, may not be the answer during this crisis.
"I think gold is actually in a kind of a smaller bubble by itself now," Zeberg stated. "I think you're going to see a rather strong decline in gold to the very reasons that I just said talked about here."
Zeberg's bearish stance on gold is rooted in his expectation of a deflationary bust. As the economy contracts and inflation falls, the US dollar is likely to strengthen, making gold a less attractive asset.
"I don't want to hold gold into that environment," he said. "I actually think it's a very bad environment to hold gold."
Instead of gold, Zeberg recommends focusing on US Treasuries and potentially German bonds as safer bets during this period of economic uncertainty.
While Zeberg is pessimistic about the short-term outlook for gold, he remains optimistic about its long-term potential. He believes that after the deflationary bust, gold could experience a significant rally.
"When the real business cycle starts to take over here, you're not going to see this doing tremendously well," he said, referring to the current state of the crypto market. "And that's it."
Zeberg's insights offer a sobering assessment of the current market conditions. Investors should carefully consider his warnings and adjust their portfolios accordingly.
Watch the full interview:
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