Bear Market Potential Driven by Commodities, Inflation Bump

• A sustained global inflation regime is driving capital from financial assets to hard assets like metals, coal, natural gas, and oil.
• Rising prices for commodities, specifically DRAM (memory for AI), are expected to 'crush growth and profit margins' for mega-cap tech companies.
• The U.S. dollar is anticipated to experience a short-term counter-trend rally but remains in a long-term bear market due to ongoing inflation and financial repression.

Larry McDonald discusses the ongoing commodity bull market, driven by persistent global inflation and capital migrating from financial assets to hard assets. He warns that rising commodity prices, including memory for AI, could 'crush' the profit margins of mega-cap tech companies, potentially leading to a broader bear market. He also foresees a short-term counter-trend rally for the U.S. dollar, but a long-term bearish trend due to financial repression.