Bitcoin, Gold, Real Estate Are Key Inflation Hedges Before 2026 Downturn, Expert Warns

Benzinga
Aug 06

Michael Howell, founder & CEO of Crossborder Capital, has warned that global liquidity will peak by early 2026, after which markets may face turbulence due to $40 trillion in debt refinancing needs across government, corporate, and household sectors.

What Happened: In an interview on the Thoughtful Money podcast, Howell stated that global markets are at the highest liquidity levels since COVID, driven by factors like U.S. Treasury General Account drawdowns, foreign central bank easing, and China's massive stimulus.

The Federal Reserve is injecting liquidity through mechanisms Howell calls “not QE/QE” — short-dated Treasury issuance, reverse repo drawdowns, and bank funding programs.

This will peak by early 2026 before facing major strain.

A looming $40 trillion debt refinancing wave across all sectors, driven by zero-interest COVID-era debt maturing between 2026 and 2028, could trigger a significant liquidity crunch and market volatility.

Also Read: Here’s When You’ll Know If A Bitcoin, Ethereum Rally In Q4 Is Coming

Trade Bitcoin, Ethereum, and More Instantly — No Wallets, No Hassle

Speculate on price movements, claim up to $200 in bonuses, and start with risk-free paper trading with crypto futures on Plus500.

Disclosure: 82% of retail CFD accounts lose money

Why It Matters: Howell compares today's cycle to the 1980s post-Plaza Accord era, noting a similar pattern of monetary easing and asset performance.

He expects continued equity outperformance in the near term, led by tech, followed by gains in commodities and small caps.

As monetary inflation rises, he recommends hedging with assets like gold, Bitcoin BTC/USD, quality equities, and real estate.

He warns the cycle may end abruptly, similar to the 1987 crash, if central bank policies diverge or bond market stress resurfaces. 10-year Treasury yields, and repo market stress are the warning signs that Howell suggests taking note of.

Loading...
Loading...

Read Next:

  • Ethereum Reclaims $3,600: When Will The $4,000 Resistance Break?

Image: Shutterstock

$BTCBitcoin - United States dollar
$113087.34-1.71%

Stock Score Locked: Want to See it?

Benzinga Rankings give you vital metrics on any stock – anytime.

Reveal Full Score
Edge Rankings
Momentum
89.34
Price Trend
Short
Medium
Long
Overview
Market News and Data brought to you by Benzinga APIs

© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10