Veteran trader Peter Brandt has expressed his acceptance of a potential global financial system meltdown reminiscent of the Great Depression of the 1930s.
According to the investor, such a meltdown might serve as a much-needed “reset” amid growing “rot” in politics, society, morality, and intellectual discourse, he said in an X post on April 21.
“I would be perfectly OK if the global financial system has a meltdown (Ala 1930s). <…> We need to have a complete reset. If a Depression provides a rest I am A-OK with it,” Brandt said.
He also critiqued diversity, equity, and inclusion (DEI) initiatives, suggesting that during a depression, “people are more concerned about housing and food and basic needs” than “pandering to trans and other perversions.”
The Great Depression began with the 1929 crash, sending the Dow down nearly 90%, U.S. unemployment to 25%, and global trade down over 50%, with recovery taking a decade.
Concerns over a potential market crash are intensifying due to ongoing uncertainty surrounding U.S.-China trade tariffs. To this end, on April 21, the S&P 500 painted a familiar picture, wiping out $1.5 trillion in market value.
This volatility has led key analysts and market players to raise their recession forecasts, with some estimating a 90% chance of a downturn occurring in 2025.
Triggers of the next financial crisis
In sharing his views, Brandt referenced earlier market predictions from April 19, in which he forecasted declines in key financial instruments, including the S&P 500, the Japanese Yen, and 10-year U.S. Treasury note futures, by the end of 2025.
At the time, he highlighted the S&P 500 peaking at 6,133.75 and projected a sharp decline to 4,000 by the end of 2025.
His outlook featured Commitment of Traders (COT) data, which indicated heavy speculative positioning. Brandt interpreted this as a sign of an overbought market ripe for a crash.
Furthermore, Brandt foresees a sharp depreciation of the Yen, predicting the USD/JPY pair will drop from around 140 to 120 by year-end—a nearly 20% decline.
Additionally, he projects that 10-year U.S. Treasury note futures will fall from 110 to 104 by the end of 2025, implying rising yields and tighter financial conditions. He emphasized his confidence in this bearish outlook, stating, “Bank it. Screenshot it.”
Alternative assets returns
Brandt also shared bullish projections for Bitcoin (BTC) and gold, anticipating a parabolic rise for the cryptocurrency and strong outperformance of the precious metal relative to the S&P 500, which reinforces his broader market upheaval thesis.
Amid growing uncertainty, investors appear to be leaning into gold’s safe-haven appeal, pushing the metal to a new record high of $3,500.
Featured image via Shutterstock
