Bad Week Set to Get Worse Before Better: 3-Minutes MLIV

• Expects markets to 'get worse before it gets better' due to geopolitical tensions and a lack of short-term political compromise.
• Forecasts 'dramatic more selling off' in stocks (10-20% pullback needed), bonds, and potentially the dollar to prompt a resolution.
• Notes gold's current rally but predicts it will eventually 'collapse aggressively' in extreme risk aversion before rebounding, citing past crises.
• Believes bond yields are structurally heading higher over the long term, but this is a slow-moving trend.

Mark Cudmore expresses a bearish short-term outlook for global markets, anticipating further sell-offs in equities, bonds, and potentially the dollar, driven by geopolitical tensions like the Greenland crisis and upcoming Davos discussions. He believes significant market pain is necessary to prompt political compromise, though he expects a long-term structural rise in bond yields.