Global debt is spiraling out of control, and a financial storm may be closer than we think.

This is not alarmist talk. A legendary investor has once again sounded the alarm, and this time he is backing up his words with action—completely clearing his US stock positions. The 82-year-old veteran, who once teamed up with Soros to create a 4200% return myth, predicted the US housing market collapse in 2005, and three years later, the subprime mortgage crisis erupted, fully validating his judgment. Now, his forecast is: the most severe financial crisis in history will occur in 2026.

Why is he so confident? Just look at these numbers.

The US national debt has surpassed $37 trillion, with an additional $3 million in debt added every minute. Paying just the interest costs over $1.1 trillion annually—more than the entire defense budget. Japan’s situation is even more alarming, with debt-to-GDP ratio soaring to 250%, compared to only 180% when Greece faced its debt crisis. Global public debt has accumulated to $315 trillion, which means what? It’s the money saved by people around the world that can’t fill this black hole. The "aftereffects" of central banks’ frantic money printing during the pandemic are now beginning to erupt.

What makes the situation more complicated is that while traditional finance struggles in the debt quagmire, the stock market is experiencing another frenzy—the AI bubble. The combined weight of the seven largest tech companies in the US stock market now exceeds 36% of the S&P 500 index, a concentration level even higher than during the peak of the 2000 internet bubble. Take Nvidia alone; its market value is equivalent to the total of the top twenty European listed companies. Tech giants are shouting "AI revolution will change the world," but they are also frantically cashing out: many are starting to reduce their stock holdings, and even the archetype of hedge funds’ "big short" has begun to short Nvidia. Technological innovation itself is not the problem, but stock prices have long drifted away from fundamentals.

Faced with such a situation, this seasoned investor’s advice is surprisingly simple: hold cash, allocate to safe-haven assets like silver, and stay away from those hot bubble sectors that are currently partying. The logic is straightforward—when the storm hits, surviving is more important than how much you earn.

For cryptocurrency investors, this is a moment worth pondering. Against the backdrop of increasing volatility in traditional financial markets, digital assets like Bitcoin and Ethereum are becoming even more prominent as alternative asset allocations. Risk and opportunity often coexist, and the key is how to build a more resilient asset allocation portfolio in an era of escalating global economic uncertainty.