Macro guru and CEO of Real Vision Raoul Pal is making predictions about a massive elimination of wealth that he said could bring drastic changes to the financial landscape.
Pal tells his 962,500 Twitter followers that the current economic downturn is likely to lead to an economic contraction that returns to pre-Covid levels.
The former Goldman Sachs executive says baby boomers, who own the most wealth in the U.S., are faced with limited options to deal with a possible recession.
“For Boomers, the options are:
Value of pensions destroyed, or annual pension payments eroded by inflation, or QE (quantitative release) to infinity.
And that entails more debt for those with pensions or low savings to offset that … which entails the need to lower debt through QE …
And that hooks anyone younger, who only gets poorer in terms of buying assets (assets are just a future overdue consumption).
Pal says this economic environment could force younger generations to allocate their wealth to the crypto and technology markets, as he says they are the only asset classes that can keep up with currency degradation.
“And that means young people need to be completely excluded or take more risks, as crypto and technology are the ONLY assets that have overcome degradation, but are more risky and volatile.”
Ultimately, he believes 20 years of negative interest rates are on the table, as they create room for debt reduction and rising asset prices.
Last month, the macro expert said that while there may still be more pain to come, he thinks the Bitcoin and crypto markets are in a long-term opportunity zone.
“But can things get worse? Absolutely. But for my investment framework, we are in the buying zone … close to the two standard deviation [logarithmic] regression channel “.
Source: Raoul Pal / Twitter Check Price Action Don’t miss out: Subscribe to receive cryptocurrency email alerts directly in your inbox. in The Daily Hodl are not investment tips. Investors should do their due diligence before making any high risk investment in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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