Why Cem Karsan Is Buying June Calls for a 40% Crash

Cem Karsan, founder of KaiWealth, forecasts a significant market drawdown occurring between the midterms and January, potentially exceeding 20%. This crisis is driven by unsustainable debt levels and the necessity for government intervention, which will likely manifest as a sovereign wealth fund and large-scale quantitative easing to suppress long-term rates. Karsan argues that the market is currently "too big to fail," forcing the government to act proactively rather than reactively to maintain stability. Investors should prepare for this volatility by owning hard assets and leveraging the debasement trade, rather than betting on bond volatility. Following the interview, the hosts discuss their own portfolio adjustments, including long-term positions in TLT and calendar spreads, reflecting the broader uncertainty and the potential for a "V-shaped" recovery following the anticipated crisis.