Analysis: US Stock Market Bubble May Surpass 1929, S&P 500 Faces Extreme Pullback, Gold and Silver Emerging as Safe-Haven Assets

BlockBeats News, July 27th — Senior macroeconomist and Head of Research at Goldmoney, Alasdair Macleod, issued a warning that the current valuation bubble in the U.S. stock market may have exceeded that of the eve of the 1929 Great Depression, and the financial market is facing the risk of an "ultimate crash."

Macleod stated that the imbalance of supply and demand in the U.S. bond market, reduced foreign buyers' allocation, and increasing U.S. debt pressure could lead to a sustained rise in U.S. bond yields, ultimately impacting U.S. stock valuations. He believes that if market confidence reverses, the S&P 500 Index may face a value retracement of over 90%.

The scale of U.S. debt continues to rise, facing financing and refinancing pressures of approximately $10 trillion to $11 trillion in the next 12 months. With decreasing U.S. bond buyers, the Federal Reserve may be forced to stabilize the market through balance sheet expansion and money printing, further eroding the purchasing power of the fiat currency.

Macleod believes that modern financial assets fundamentally rely on the credit system, with stocks, bank deposits, and U.S. dollar cash all carrying a certain degree of counterparty risk, while gold and silver, as tangible assets independent of government credit, may become a safe haven choice in an extreme financial risk environment.