Raoul Pal, a macroeconomics expert, says that risk assets may experience a massive explosion if the US Dollar continues to weaken.
Pal, in a recent video, tells his 242,000 YouTube followers that risk assets, such as crypto and stocks, could see an extended bullish period if the US Dollar index (DXY), falls even further during an improved business cycle.
I believe the opposite of business cycles being low so long is that the reverse side will last longer than expected, because there’s still this little dislocation post-Covid which extends the economic cycle…
If financial conditions continue to move, if the Mar-a-Lago Accord is really in place, they will get dollar [DXY] down below 90. Then we will continue and maybe this is a bubble. .”
DXY is a measure that shows the relative value of the US dollar to six major currencies.
Pal says that an increase in liquidity globally could act as a catalyst to boost asset prices, especially when compared with the high levels of government debt.
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As new information becomes available, this post Falling US dollar could trigger a ‘full bubble cycle’ in risk assets according to ex-Goldman Sachs Exec Raoul Pa may be updated.
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