Alasdair Macleod Warns of a Stock Market Bubble Exceeding That of 1929; S&P 500 Could Face a 90% Drawdown

Huo Xing Finance reports that on July 27, senior macroeconomist and Goldmoney Research Director Alasdair Macleod issued a warning that current U.S. stock market valuation bubbles may have surpassed those seen before the 1929 Great Depression, exposing financial markets to the risk of a "ultimate total crash." Macleod stated that imbalances in supply and demand in the U.S. Treasury market, reduced foreign demand, and rising U.S. debt pressures could drive Treasury yields higher over time, ultimately undermining U.S. stock valuations. He believes that if market confidence reverses, the S&P 500 could face a drawdown of more than 90% in value. U.S. debt levels continue to rise, with an estimated $10 trillion to $11 trillion in financing and refinancing needs over the next 12 months. As buyers of U.S. Treasuries decline, the Federal Reserve may be forced to stabilize markets through balance sheet expansion and money printing, further eroding the purchasing power of fiat currency. Macleod argues that modern financial assets fundamentally rely on credit systems, and stocks, bank deposits, and dollar cash all carry some degree of counterparty risk. In contrast, gold and silver—physical assets independent of government credit—may serve as safe-haven options in extreme financial risk environments.