Senior commodity strategist Mike McGlone recently stated in an interview that the current economic situation may be worse than the 2008 financial crisis. He talked about the volatility of the US stock market and believed that there is a great risk of increased volatility in the future.

In addition, he expressed serious concerns about the potential global economic recession, stating that the widespread economic challenges faced by multiple major economies have exacerbated market volatility.

The broader commodity market also reflects these concerns. For example, due to the impact of supply and demand dynamics, crude oil prices have been unstable. Recently, West Texas Intermediate crude oil futures fell below $70 per barrel, reflecting concerns about global demand due to slowing economic growth in major economies such as Germany. The Bloomberg Commodity Index also showed a significant decline, indicating that various commodity categories are facing deflationary pressure.

McGlone pointed out that commodities have shown significant deflation. He refers to the significant drop in prices of industrial metals and grains.

In this turbulent environment, McGlone emphasized the importance of shifting investment strategies towards safe haven assets.

He suggested that in the current environment, reducing holdings of risky assets and increasing holdings of safe haven assets such as gold and long-term US Treasury bonds is a prudent approach. Especially gold, it is a resilient asset.

McGlone predicts, "I think it's only a matter of time before gold rises to $3000 per ounce. It can reach the same level as the S&P 500 index." He explains that gold's historical performance during periods of economic instability, combined with its role in hedging against currency depreciation, makes it a strong asset for the future.

In the case of market uncertainty, US treasury bond bonds also provide a safe haven. Despite concerns about deficit spending. McGlone believes that US treasury bond bonds are still an important part of the defensive investment strategy. "Although people are talking about deficit spending, the US treasury bond is still worth investing in," he said

Daily chart of spot gold