The Most Dangerous Trade in the World Is Unraveling – Bert Dohmen
The Most Dangerous Trade in the World Is Unraveling – Bert Dohmen
Kitco News: 4-19-2025
Global markets are flashing warning signs as credit spreads widen, gold hits new record highs, and political pressure mounts on central banks.
With the European Central Bank cutting rates to 2.25% and Trump attacking Fed Chair Jerome Powell over rate policy, the battle between inflation, growth, and monetary control is intensifying.
In this Kitco News interview, Bert Dohmen, founder of Dohmen Capital and author of the Wellington Letter, joins Jeremy Szafron to dissect the critical forces reshaping today’s markets.
From the hidden dangers of the basis trade to growing cracks in credit markets, Dohmen outlines why the system is under stress—and where smart money is moving next.
He also explains why the Fed is “boxed in,” why gold miners remain undervalued despite gold’s surge to $3,370, and what capital flight signals about confidence in traditional safe havens like Treasuries. Follow
00:00 Introduction
01:25 Market Dynamics and Risks
01:46 The Basis Trade Explained
04:36 ECB vs. Fed: Diverging Policies
05:47 Historical Perspectives on Interest Rates and Inflation
07:50 Credit Spreads and Market Signals
09:42 Gold and Market Liquidity
13:57 Equities and Market Health
21:34 Gold Miners and Investment Opportunities
25:24 Long-Term Market Cycles and Predictions
32:28 Conclusion
