Markets Face Historic Reversal? Analyst Warns of Major Crash Across Assets

In his latest analysis, McGlone suggests that the U.S. economy might be approaching a breaking point triggered by political and policy tensions, especially around the renewed trade war driven by President Trump’s sweeping tariffs.

According to McGlone, the U.S. has a built-in tendency to rebalance when extremes are reached—economically, politically, or both. He believes that mechanism may soon kick in, either through the next election cycle or via a major market correction. If that happens, it could send shockwaves through everything from tech stocks to commodities.

Using historical comparisons, McGlone points out that current valuations—such as the S&P 500 relative to GDP and gold—are hovering near levels seen before past collapses like the Great Depression, the dot-com bubble, and the 2008 financial crisis. If those patterns hold, the fallout could be substantial.

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He paints a grim base-case scenario: a 50% drop in U.S. stock prices, oil tumbling to $40 a barrel, copper sliding to $3 per pound, the 10-year Treasury yield settling at 3%, and Bitcoin plunging to $10,000. Most cryptocurrencies, he says, could suffer drawdowns as deep as 90%. Interestingly, gold could be the one outlier—rising to $4,000 per ounce amid the turmoil.

While these numbers may sound extreme, McGlone insists they’re not out of the ordinary when viewed through the lens of historical reversion. Markets, he argues, often return to long-term averages in dramatic fashion—and that process may now be underway.

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