Market Facing the Mother of All Bubbles, This Will End in Tears in 3-6 Months

"Regional bank stocks are breaking down to new cycle lows," asserts Keith McCullough, founder and CEO of Hedgeye Risk Management. "This started with a liquidity crisis at the banks and it's going to end with a lack of liquidity," he tells Daniela Cambone. "The market cycle and economic cycle peaked back in 2021, and from that point on it's been a market crash and a bear market, which we are in phase 3 of," McCullough argues. "[Hedgeye] shorted gold throughout 2021, and then went full-blown gold bull in November of last year... I'm in no hurry to get off this gold run," he says. "The supply side of gold and production side has arguably not been this good since 2001. You have a very good supply picture and fundamentally I believe it will become a scarce asset," McCullough states. "To me, if gold is ever going to work, it should work big-time now," he continues. "We view bitcoin as a commodity, but for now we are bearish on crypto dating back to Q4 of 2021, it's important to contextualize why crypto crashed and why you should'nt chase it at the top end of the range here," he says. "The biggest problem with bitcoin is that it has uninvestable volatility. The level of volatility even at this price is nauseating," McCullough states. "The way that bulls are behaving right now epitomizes the 'mother of all bubble' behavior. I think this ends in tears in the next three to six months... not enough people learned their lesson from the bear market in 2022," he concludes.

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Chapter stamps:
00:00 Janet Yellen’s comments on the banking crisis
2:02 Quad 4 recession
5:11 Outlook on the broader market
6:47 What will the Fed do next?
8:25 How will we know we’re in a recession?
10:26 Market sectors that Keith likes
12:10 Keith’s thoughts on gold
15:39 Keith’s thoughts on bitcoin
18:35 How should investors navigate?
21:08 Debt ceiling situation
24:33 The de-dollarization move