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Luke Gromen, founder, president, macroeconomic analyst, investor at FFTT, LLC (Forest for the Trees), warns that the risk of a U.S. Treasury yield event and broader western sovereign debt disruption continues to climb.
Gromen highlights that additional rate hikes, further USD sanctions, or increased military conflict could intensify these risks. He suggests that either USD, long-term U.S. Treasuries, or major entitlement and defense obligations represent significant bubbles in the current financial system.
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Gromen previously noted that gold has historically outperformed major sectors during late-stage U.S. capex booms. He has also questioned why deflation in China is not offsetting inflation in the U.S.. These prior observations reflect his ongoing focus on structural risks within global markets.