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

The global economy stands at the precipice of a post-inflationary, deflationary cycle driven by the U.S. stock market’s extreme valuation relative to GDP and public debt. Commodity strategist Mike McGlone argues that major assets—including gold, copper, and Bitcoin—have become "stock puppets," exhibiting high correlations to equity performance rather than acting as independent hedges. While energy and commodity prices have spiked, these surges are historically transitory, as high costs inevitably suppress demand and incentivize supply-side innovation. The Federal Reserve’s current aggressive rate-hiking stance risks triggering a severe recession, particularly if the equity market experiences a sustained 10% correction. Ultimately, the market is overdue for a volatility-driven purge, as current price levels in both equities and commodities remain disconnected from underlying economic realities and historical cyclical patterns.