Forget about the 4 year Bitcoin cycle, forget about inflation & deflation, forget about whatever you think drives asset prices up or down - Real Vision CEO and Macroeconomic investor Raoul Pal believes it all comes down to one thing - liquidity.
Raoul has been working on his overall thesis that underlies all his investment decisions for a while and he thinks he’s cracked it in what he is calling ‘The Everything Code’ In a nutshell, Raoul believes that Central banks and the federal reserve are stuck in a situation in which they can’t let asset prices fall & no matter what happens, all roads lead to more money printing over time.
This leads to the debasement of currency over the long - term and if you look at a chart of the Federal Reserve balance sheet overlayed with the stock market, it’s essentially a perfect fit.
However, with asset prices going up, two far out-perform the others as they are further out on the risk curve - these are technology, such as FAANG stocks or artificial intelligence and the other one is crypto - Bitcoin, Ethereum and the likes. In his latest Ask Me Anything Update, Raoul lays out the current financial climate, why he is 100% certain liquidity drives everything and why he’s betting it all on innovation, technology & crypto for the 12 months.
About Raoul Pal:
Raoul Pal is a co-founder of Real Vision, a financial media company offering in-depth video interviews and research publications from the world's best investors. Prior to starting Real Vision, Raoul ran a successful global macro hedge fund.
