Expert Warns of Market Turbulence Ahead: Inflation Hedges Needed

August 6, 2025 - 04:36

Michael Howell, founder and CEO of Crossborder Capital, has issued a cautionary message regarding the potential for market instability as global liquidity is expected to peak by early 2026. This anticipated peak coincides with a staggering $40 trillion in debt refinancing needs across various sectors, including government, corporate, and household levels.

In a recent discussion on the Thoughtful Money podcast, Howell emphasized that current global markets are experiencing their highest liquidity since the onset of the COVID-19 pandemic. This surge in liquidity can be attributed to several factors, including the drawdown of the U.S. Treasury General Account, easing measures from foreign central banks, and economic developments in China.

Given these conditions, Howell suggests that investors should consider diversifying their portfolios with assets such as Bitcoin, gold, and real estate. These assets are viewed as effective hedges against inflation and potential market downturns, which could become increasingly relevant as the 2026 deadline approaches.