StoneX strategist warns of equity risks, remains bullish on Bitcoin and gold

Market Outlook Remains Uncertain

Deluard states that, despite these warning signs, financial markets are expected to remain stable in the short term. He notes that upcoming events—including the US midterm elections and the much-anticipated public offering of artificial intelligence company Anthropic—are likely to support equities for the time being.

He maintains, however, that a long-term uptrend powered by relentless capital expenditure in artificial intelligence and related technologies cannot continue at its current pace. “AI capex can’t keep doubling forever,” Deluard argues, suggesting that the growth potential of technology sectors may soon decelerate.

After November, he plans a more cautious approach toward equities, favoring defensive assets instead. Deluard expects pressure on stock markets to intensify and signals a more favorable outlook for alternative stores of value.

Preference for Bitcoin and Gold

Amid these shifting market conditions, Deluard indicates a clear preference for Bitcoin and gold as strategic hedges. He believes that both assets are positioned to benefit from continued monetary expansion and potential currency debasement, especially in light of rising US government debt and the reemergence of quantitative easing policy.

In his analysis of the relative strengths of Bitcoin and gold, Deluard suggests that each asset offers unique advantages in an environment marked by fiat currency risks. He expects both to perform well if traditional markets encounter further stress.

Deluard observes that rising Treasury yields may signal long-term dollar debasement, while renewed quantitative easing could boost both Bitcoin and gold as investors seek safe havens.

European Debt and Global Contagion

Deluard also addresses concerns regarding the French bond market and broader eurozone risks. He points to ongoing debt problems in France and highlights the potential for contagion effects throughout Europe. In this climate, he believes that shorting the euro may become an increasingly attractive strategy for some investors.

Daily US tax collection data reveal further signs of economic strain, reinforcing the importance of monitoring bond market pressures and macroeconomic trends in real time.

AI Sector Growth and Meme Token Market Dynamics

The growing influence of AI and robotics raises questions about whether innovation can resolve long-term structural debt challenges in the US. However, Deluard doubts that technological advancements alone will be sufficient to offset fundamental fiscal imbalances.

Just as monitoring technical signals like contracting patterns or key resistance levels is crucial in traditional assets, keeping a close watch on the meme token market offers vital insights. In the meme token segment, viral internet trends can swiftly translate into substantial trading activity. According to data from Fomo App, one recent trade involving the “Niu Lai” token turned a $99 investment into approximately $370,000, underscoring how rapidly fortunes can shift in these markets. Fomo App provides a unified platform for discovering and trading tokens, featuring social feeds, investor rankings, and trade notifications, allowing users to follow both token trends and investor activity.

Looking ahead, Deluard’s market outlook remains cautious for equities but notably optimistic for digital and tangible assets considered to offer greater resilience against monetary and economic shocks.