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Markets are rallying, but Larry McDonald says it’s time to raise cash. In an interview with Kitco News, McDonald - founder of The Bear Traps Report - issues a “HIGH” cash alert, warning that the current surge resembles the short-covering blowoffs of 2000–2001. He says the U.S. is heading toward a rare “two-terms, two-recessions” scenario, as credit stress builds, tariffs tighten, and consumer delinquencies hit all-time highs. McDonald, a former Lehman Brothers trader and New York Times bestselling author, joins Kitco News Anchor Jeremy Szafron to discuss why Buffett’s $348B war chest might signal deeper cracks, how private credit is starting to unravel, and what rising long-end yields and sovereign debt pressure say about the global financial system. He also breaks down his rotation into gold miners, commodity equities, uranium, and Brazilian stocks, while keeping a tactical watchlist of AI infrastructure names for the next pullback.
Key topics: – Why Larry McDonald says this is a “raise cash” moment – U.S. GDP turning negative and risk of a policy-induced recession – Cracks in $1.8 trillion private credit and record auto delinquencies – The debt ceiling, Treasury auctions, and Fed policy inflection points – Buffett’s $348B in cash and what it means for markets – Gold, platinum, and Bitcoin in a credit shock: what holds value best? – Dollar overexposure and global rotation into hard assets and EM – Why uranium and Brazil may lead the next bull cycle
