Senior Commodity Strategist Mike McGlone has warned about global financial markets, describing the current climate as a potentially historic market reset and the beginning of a major liquidation event.
McGlone emphasized that despite recent volatility, the worst of the downturn is likely still ahead for investors, warning that a “cascade is kicking in” during an interview with David Lin published on November 7.
He highlighted the severity of the situation, noting that markets are experiencing conditions not seen in decades, with significant corrections already affecting key sectors and assets.
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McGlone also pointed to the collapse of high-flying stocks and broader equity markets as evidence that the era of easy money is ending.
“It’s not even started. What you’re seeing is some of the high-flyers reverting. Look at them on a 10-year basis. How are they? This is just getting started,” he said.
Tech stocks and crypto faltering
The strategist highlighted that major technology stocks and cryptocurrencies, which led the previous market rally, are now faltering.
He specifically noted that Bitcoin (BTC) peaked in October 2025, while the Nasdaq reached its high in October 2026, signaling a shift in market momentum.
McGlone also identified the Federal Reserve’s restrictive monetary policy as a significant headwind, warning investors against fighting the Fed.
He added that despite recent market declines, inflation and high interest rates continue to weigh on the economy.
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He argued that markets need a painful period of readjustment to address extreme valuations before a sustainable bottom can form. He illustrated the potential economic impact, saying that “a 20% correction in the stock market is 50% in GDP.”
Where to seek refuge
Rather than seeking refuge in traditional commodities such as gold and silver, McGlone advocated a more conservative approach.
He warned that both metals have experienced parabolic rallies and are now highly correlated with stock market volatility.
“It’s not that the safety play is good old US Treasuries. Gold right now is the highest price versus a basket of US Treasuries in about four decades,” he added.
Overall, McGlone suggested that investors looking for safety should focus on fixed income, as the current market environment makes riskier assets increasingly vulnerable to further liquidation.
Featured image via Shutterstock
