Lost Debate The Market Is Speaking — Are You Listening?
Nov 19, 2025
Lawrence McDonald, author and market analyst, discusses the dangers of passive investing and its concentration in a few mega-cap stocks. He warns that traditional safety plays are being reshaped by de-dollarization and changing demand for U.S. treasuries. McDonald identifies opportunities in hard assets, select commodities, and short-term cash positions as markets face potential upheaval. They also delve into the risks of algorithm-driven trading and how generational shifts in risk tolerance are impacting investment strategies.
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Bailouts Keep Getting Bigger
- Fiscal and monetary rescues have escalated dramatically from 2008 to COVID-era responses.
- Each crisis now demands exponentially larger interventions, shrinking central bank firepower for the next big shock.
The Stocks-Bonds Shock Absorber Is Weakening
- Historically bonds rallied when stocks crashed, cushioning balanced portfolios.
- That protective stocks-down/bonds-up dynamic may be breaking as global demand for U.S. Treasuries wanes.
De-Dollarization Signals Emerging-Market Behavior
- Trade tensions, sanctions, and policy choices are reducing foreign demand for U.S. Treasuries.
- Simultaneous drops in stocks, bonds, and the dollar look more like emerging-market dynamics.
