🚨 THE SYSTEM IS BREAKING DOWN

Gold: FALLING

Silver: FALLING

S&P 500: FALLING

Bitcoin: FALLING

And things could seriously worsen before they improve...

We are witnessing live the explosion of the 'everything' bubble.

The S&P 500 is trading at the highest valuation multiples in history.

👉 Higher than in 1929 and 2000.

A return to the mean under these conditions is terrifying but logical.

But the real story is the metals.

👉 Gold and silver are not falling because they have no value.

👉 They are falling because the system is starving for liquidity.

In a real margin call event, funds do not sell what they want to sell.

👉 They sell what they can sell.

Gold and silver are:

liquid

profitable for many players

👉 They thus become the first piggy bank we break when margin calls come in.

THIS IS A LIQUIDITY CRISIS.

History shows us that during a deflationary crash (like in 2008 or March 2020),

👉 metals are first dragged down with stocks.

📌 The real bottom signal is when:

the selling of metals stops,

but stocks continue to fall.

👉 That’s when the bottom forms.

Until then:

cash is king,

deleveraging will be BRUTAL.

As I have always said, ~7 000 points is probably the peak of the S&P 500,

and I anticipate a drop of 10 to 15% from here, or even more.