Previous Goldmanย Sachsย Group executive Raoul Pal reveals that cryptocurrency and technology stocks are about to take off on new rallies in the near future.
In a new ask-me-anything (AMA) session, the Real Vision founder reveals that all indicates are strongly suggesting that central banks aroundย theย globe will inevitably be forced to print money, consequently boosting danger assets, most of all the cryptocurrency and tech sectors.
โAll of my forward looking indicators have been suggesting that liquidity is going to keep growing, and that it will drive cryptocurrency and tech greaterย than anything else. And thatโs basically been the story of the year so far. I think that that continues, and thatโs confused manyย of people.
Onย theย otherย hand, one trade thatโs confused me is the bond trade, and thats confused manyย of people. Bond yields should have fallen by now, and they still havenโt. Onย theย otherย hand, I think this is must do with the debt ceiling issue, which is the other confusing thing.
The debt ceiling issue has some real dangers around it, and we doย not really know how to price them. All we do know is people are pretty bearish around it, and I think thatโs reasonable asย well, to have hedged around it, because we doย not know what can happen. Onย theย otherย hand, the chances are, that anything that reasons a paralysis of financial markets will lead toโฆ more stimulus to come.โ
Pal reveals that indicators tied to the G5 nationsโ monetaryย authority balance sheets are suggesting that a new wave of liquidity is approaching financial markets. The macro guru reveals that analysts bearish on danger assets asย aย resultย of uncertain economic conditions are missing the point, because even if the economy slows down much more, central banks will still likely enhanceย the money supply, reportsย by Pal.
โSo yes we canย potentially have some stumbling blocks, yes we canย potentially have some hurdles, but liquidity going forwards, as the economy slows down, and the central banks start increasing their activity, that will drive investment prices higher.โ
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