Kitco
26 May 2026, 14:23 UTC · 3h ago
Source · https://www.kitco.com/news/article/2026-05-26/economist-mark-thornton-warns-150-year-market-peak-calls-fed-nomination-hit
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5 claims · impact-rated
The S&P 500 is currently at its second-highest valuation level relative to historical norms in 150 years, with the Buffett indicator 2.5 standard deviations above average. — Extreme overvaluation suggests a high probability of a significant market correction or crash in equities.
-0.80The nomination of Kevin Warsh as Fed chair is characterized as a 'hit job' on precious metals, potentially coordinated with bullion banks to drive prices down. — Suggests a hawkish shift in leadership and targeted institutional pressure that could suppress gold and silver prices.
-0.60A Volcker-style interest rate shock is considered mathematically impossible because US national debt exceeds 100% of GDP, making high financing costs unsustainable. — Limits the Fed's ability to aggressively hike rates to fight inflation, which supports the continued need for hard assets.
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Middle East conflict and the closure of the Strait of Hormuz have caused structural destruction to productive capacity, driving a commodity supercycle and higher energy costs. — Structural supply shocks typically lead to sustained higher prices for energy and base metals.
+0.30The SILVER Act and state-level initiatives (e.g., Texas) are decentralizing precious metals depositories and removing capital gains taxes on gold and silver. — Increases accessibility and reduces tax friction for investors moving into physical hard assets.
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