The stock market could drop 80% due to prolonged economic damages. Gold could hit $2,300 an ounce this year and $10,000 by the end of the decade.

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  • Both the S&P 500 and gold are hitting new highs.
  • The stock market could drop by 80% as the economy struggles to emerge from the pandemic. Gold could hit $2,300 this year.
  • We shouldn’t expect a vaccine to be the cure to all the economy’s problems.

The U.S. stock market keeps rising despite rising virus cases and a sloppy recovery. The S&P 500 has rallied by more than 45% since hitting bottom on March 23.

We’re In the Midst of a Massive Bust

David Hunter, the chief macro strategist at Contrarian Macro Advisors, believes that the economy is in the midst of a massive “bust” consisting of two phases.

We are now in the first phase, which consists of the initial bear market and short-lived recovery.

The second phase of the bust, which Hunter expects to take place in late 2020 or early 2021, will see a much steeper downturn than the first phase.

Stimulus measures have failed to support many sectors of the economy that need help.

Many businesses have gone bankrupt because of the lockdowns. Hunter predicts we’ll see much more insolvency in the second phase.



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