On December 18, 2024, market analyst Steve Burns expressed grave concerns about the U.S. stock market, describing it as the "greatest bubble in the history of civilization." Burns, who is currently shorting the market and investing in gold and silver, highlighted the alarming lack of fear and uncertainty priced into equities.
He noted that the Federal Reserve's monetary policy has resulted in excessive liquidity, with the U.S. dollar (DX00) being at risk of devaluation. Despite interest rate cuts, mortgage rates remain unaffected, indicating the Fed's loss of control over the yield curve.
Burns anticipates potential hyperinflation and suggests that if a market correction occurs, he would invest in precious metals ETFs like GLD and SLV, as well as stocks such as Palantir Technologies (PLTR), Nvidia (NVDA), and Rocket Lab USA (RKLB). He emphasized the importance of position sizing to manage trading risks effectively.
Overall, Burns's insights reflect a cautious approach amid a seemingly overbought market, urging traders to reconsider their strategies.