• Bloomberg analyst Mike McGlone warns of a financial reset as central banks raise rates.
• McGlone says US is still the most significant economy and other central banks are scrambling to keep up with Fed.
• He predicts stock market rally could reverse just like Bitcoin did after reaching its 2023 high.
Biggest Financial Reset of Our Lifetime Coming
Senior Bloomberg commodities analyst Mike McGlone is warning of a financial reset amid an environment of tightening monetary policy. McGlone says in a Wolf of All Streets podcast that a major financial recalibration looms as central banks across the globe raise rates.
US Still Most Significant Economy
According to the senior Bloomberg commodities analyst, the Federal Reserve’s global influence has not waned and its actions are likely to be replicated by other central banks just as before. “Obviously we’re going to get 0.25% [rate hike] today and then we have every other central bank with the exception of China and Japan all following the Fed…The bottom line is, don’t fight the Fed. And everybody does.”
Stock Market Rally Could Reverse
Turning to equities, McGlone says that the stock market rally could reverse just like Bitcoin (BTC) did after hitting its 2023 high. “I see this is a silly stage in terms of the equity market…I sense the similar bullishness in the equity market that I sensed in Bitcoin when it was at $31,000 a month or two ago.”
Don’t Fight The Fed
McGlone advises against fighting the Fed’s policies, noting that “once they stop tightening, everything’s okay”. He cautions investors against blindly following conventional wisdom and relying too heavily on past trends when making decisions about their investments or economic outlooks.
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