Stocks are soaring on AI hype but are investors missing the real risks? In this episode of In the Money with Amber Kanwar, legendary Wall Street strategist Larry McDonald, founder of the Bear Traps Report and author of the new book How to Listen When Markets Speak, explains why the next big rotation is already underway from overvalued tech stocks to overlooked hard assets.

Larry explains why gold, silver, copper, uranium, and even coal are crushing tech stocks like Nvidia and Meta, and why energy infrastructure is the overlooked key to the AI boom. He argues that the “Magnificent 7” may face significant drawdowns and explains why institutional investors are growing wary of the Mag 7 as capital expenditures skyrocket and return on invested capital becomes harder to justify. 

In a wide-ranging discussion, Larry unpacks why inflation may prove stickier than markets expect, how monetary and fiscal policy are fueling a stagflation setup, and why the Fed’s easing could backfire, pushing even more capital into gold, silver, copper, uranium, and natural gas. 

In the mailbag, Larry answers questions on copper demand in the robotics age, how to approach physical commodities vs equities, and why it’s time to start thinking seriously about junior miners. He also shares a contrarian take on Tesla and warns about growing debt risks, specifically in Europe.  

Then, in his Pro Picks segment, Larry reveals three of his top trade ideas in this new market regime: shorting Nvidia through a leveraged ETF, going long natural gas via equities like Range Resources and Antero, and betting on coal as an unexpected winner of AI’s energy needs.

Whether you’re rethinking tech exposure, looking for real inflation hedges, or trying to understand how capital is rotating in a high-volatility world, this episode is packed with big-picture insight and tactical ideas you won’t want to miss.

The Bear Traps Report: https://www.thebeartrapsreport.com/

How to Listen When Markets Speak: https://www.amazon.ca/Listen-When-Markets-Speak-Opportunities/dp/0593727495

Timestamps
00:00  Welcome back & details for our swag giveaway
04:05 The Lehman story and Larry’s origin story
06:00 Larry’s new book and the migration of capital to hard assets
10:00 What about AI? Investing in commodities for the AI trade
14:30 Aren’t the commodities vulnerable?
16:30 But Microsoft & Nvidia are not Class of 2000 stocks
18:30 Are Larry’s clients ready to wean off the Mag 7?
21:30 Why Larry believes inflation will remain elevated
25:30 What kind of drawdown could investors be looking at? 

29:00 The risk of Trump crushing the Fed’s credibility & stagflationary risk
33:30 When does the U.S. debt situation become an actionable accident
37:50 What is the struggling U.S. dollar telling us?
39:40 ITM Mailbag: Where is copper going in the next 1-3 years? (COPX)
44:00 Junior gold miners and Equinox Gold stock (EQX)
45:20 Foran Mining, uranium miners
46:20 Tesla stock (TSLA)
49:00 What’s the biggest risk in markets Larry sees right now?
52:35 Larry’s Pro Picks (short NVDA, long nat gas, long coal)
1:05:15 ETF Minute: CI Covered Call ETFs
1:09:45 Coming up: Adam Waterous 

Sponsors

For over 25 years, Raymond James has been helping Canadians achieve their financial goals. Visit https://raymondjames.ca today to discover how you can live a life well planned.

Pro Picks is brought to you by ATB Financial.  Visit https://ATB.com/inthemoney for more information

ETF Minute is brought to you by CI Global Asset Management. Find out more about the CI Covered Call ETFs here: https://funds.cifinancial.com/en/funds/ETFS/CIGoldGiantsCoveredCallETF.html?currencySelector=1&classId=455&redirect_type=class_id

https://funds.cifinancial.com/en/funds/ETFS/CITechGiantsCoveredCallETF.html?currencySelector=4&classId=455&redirect_type=class_id

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