Ascalon VI Capital CEO: Dow Could Hit 50K, But 'Significant' Correction Looming

[embed]https://youtu.be/gN9P4FY6xzU[/embed] Mark Simone, filling in for Sean Hannity, interviewed Anthony Esposito, founder and CEO of Ascalon VI Capital, about the current state of the stock market and economy. Esposito acknowledged that while the Dow could reach 50,000 in the near term given strong momentum, he expressed significant concerns about market valuations. He noted that the inflation-adjusted, cyclically adjusted PE ratio on the S&P 500 is approaching levels last seen during the tech bubble of 1999-2000, making current valuations historically extended. Esposito highlighted a key structural risk in today's market: the heavy concentration in just seven stocks (the "Mag-7"), which account for 40-45% of the S&P 500's daily movement. This narrow market breadth means that if even one or two of these major tech stories falter, the entire index could fall quickly. While his technical analysis suggests more upside in the next one to three months, longer-term indicators are showing signs of cooling, and he warned of potential for a significant downturn in the coming two to three quarters. On the broader economy, Esposito was considerably more optimistic. He pointed to strong GDP growth of 4.3%, driven notably by private industry rather than government spending, which is actually down 2.7% on an annualized basis. He also emphasized the shift in job growth toward the private sector and native-born Americans, noting that government payrolls are at their lowest level in a decade and that native-born American employment hit a record high in November. When asked about AI's impact on jobs, Esposito drew from his own experience losing his floor trading job to technology, suggesting that while jobs will shift and some will be lost, new opportunities typically emerge and overall employment tends to stabilize. For investors, Esposito recommended gold and silver, reiterating a call he made last December that has since performed well. He believes precious metals still have upside potential. While he sees near-term opportunity in S&P 500 and Russell 2000 futures, he advised caution as momentum fades and suggested being prepared for volatility ahead.