Deflation Is Coming — And Gold, Bitcoin & Copper Could All Get Hit

The global economy is entering a post-inflation deflationary cycle, driven by the extreme valuation of the U.S. stock market relative to GDP. Commodity strategist Mike McGlone argues that most major assets—including gold, copper, and Bitcoin—have become "stock puppets" that move in lockstep with the S&P 500. While geopolitical tensions and energy spikes currently drive volatility, the U.S.'s status as a net energy exporter suggests that commodity prices will eventually revert to their cost of production. With the 10-year Treasury yield hovering near 5% and equity valuations at historic highs, the market faces a significant risk of a correction. A 10% decline in the stock market would likely trigger a broader deflationary event, forcing the Federal Reserve to shift from aggressive tightening to a series of rate cuts to stabilize the economy.