Markets are rallying, but Larry McDonald says it’s time to raise cash. In an interview with Kitco News, McDonald – founder of The Bear Traps Report – issues a “HIGH” cash alert, warning that the current surge resembles the short-covering blowoffs of 2000–2001. He says the U.S. is heading toward a rare “two-terms, two-recessions” scenario, as credit stress builds, tariffs tighten, and consumer delinquencies hit all-time highs.
McDonald, a former Lehman Brothers trader and New York Times bestselling author, joins Kitco News Anchor Jeremy Szafron to discuss why Buffett’s $348B war chest might signal deeper cracks, how private credit is starting to unravel, and what rising long-end yields and sovereign debt pressure say about the global financial system. He also breaks down his rotation into gold miners, commodity equities, uranium, and Brazilian stocks, while keeping a tactical watchlist of AI infrastructure names for the next pullback.
Key topics:
– Why Larry McDonald says this is a “raise cash” moment
– U.S. GDP turning negative and risk of a policy-induced recession
– Cracks in $1.8 trillion private credit and record auto delinquencies
– The debt ceiling, Treasury auctions, and Fed policy inflection points
– Buffett’s $348B in cash and what it means for markets
– Gold, platinum, and Bitcoin in a credit shock: what holds value best?
– Dollar overexposure and global rotation into hard assets and EM
– Why uranium and Brazil may lead the next bull cycle
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00:00 Introduction
01:46 Discussion on Cash Strategies and Gold Investments
04:15 Economic Indicators and Recession Predictions
05:24 Impact of Tariffs and Debt Ceiling Concerns
12:43 Private Credit Market Stress
23:49 Geopolitical Risks and Market Divergence
28:15 AI Infrastructure and Investment Opportunities
29:36 High Beta Sectors and Market Dynamics
29:50 Bull Market in Copper and Uranium
31:07 Energy Scarcity and Uranium Investments
33:01 Brazilian Equities and Emerging Markets
36:51 Gold vs. Bitcoin: Store of Value Debate
41:11 Platinum, Palladium, and Hard Assets
49:41 Gold Miners and Market Predictions
54:03 US Dollar and Market Outlook
54:59 Conclusion
#Gold #LarryMcDonald #KitcoNews #BearTrapsReport #Recession #Tariffs #PrivateCredit #Buffett #HardAssets #Uranium #Bitcoin #Dollar #AIstocks #Brazil #DebtCeiling #Fed #MacroInvesting
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The videos are not intended to provide trading advice, and the views expressed do not necessarily reflect those of Kitco Metals Inc. Kitco News, its anchors, producers, and reporters are not responsible in any way for the performance or actions of any sponsor, advertiser or affiliate of Kitco News. In no event will Kitco and its employees be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content in this video.
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