David Hunter: The Coming Melt-Up Before the Global Bust

In this podcast interview, David Hunter, a contrarian macro strategist with 52 years of experience, provides a comprehensive outlook on the current market and economic landscape. Hunter believes the market is in the final leg of a 43-year secular bull market, potentially reaching a parabolic top in the next three to four months. He predicts the S&P could reach 8,700, the Nasdaq 30,000, and the Dow 60,000 before experiencing a significant correction. Hunter anticipates a "global bust" that will be more severe than the 2008-2009 financial crisis, driven by excessive leverage and debt across global financial systems. He expects central banks, including the Federal Reserve, to eventually respond with massive monetary stimulus—potentially up to $20 trillion—to prevent a complete systemic collapse. The strategist forecasts a unique economic cycle where initial monetary intervention will lead to a deflationary bust, followed by a recovery period characterized by significant inflation. He predicts commodities will be the primary beneficiaries of this cycle, with gold potentially reaching $20,000 and silver $500 by the early next decade. Hunter is optimistic about Trump's economic policies, particularly regarding deregulation, energy production, and reshoring manufacturing, though he believes these efforts may be overwhelmed by the impending economic downturn. He expects the bust to last 12-18 months, after which significant monetary and fiscal stimulus could trigger a recovery. Regarding market sentiment, Hunter notes that institutional investors remain cautious, which he sees as fuel for further market advancement. He anticipates a narrative of a "soft landing" and potential Federal Reserve rate cuts will drive market confidence. The interview concludes with Hunter's belief that while the immediate future looks challenging, the massive monetary stimulus will ultimately trigger a recovery, albeit with significant inflationary pressures and reduced living standards for consumers.