Former Goldman exec predicts financial collapse, says he’s loading up on crypto
Macro guru and Real Vision CEO Raoul Pays says he is loading up on crypto assets as he expects economic data to deteriorate dramatically over the next few months.
In a recent discussion on Twitter Spaces, the former Goldman Sachs CEO says that risk on assets such as stocks and cryptocurrencies should not fall much further as economic turmoil has already been priced in.
“We will see the economic data in the next few months completely collapse. We will see the inflation narrative completely collapse and we will be left with the rags. And the question the market is asking is ‘does that mean stocks have to go lower or crypto has to go lower?’
And my view on that is that I don’t know, but possibly not much lower, and the reason is that a lot is priced in. This is the most negative sentiment I’ve ever seen on any survey in the last 40 or 50 years in the financial markets, whether it’s AAII [American Association of Individual Investors]institutional investor, about its market positioning, whether it is BOA [Bank of America] Merrill Lynch survey, these are frighteningly negative feelings.
So the market is struggling to make a real new big low. Now, that could happen, we could get a 10% top lower in the S&P 500, anything, I’m not a buyer at those levels.
I have bought crypto recently. I managed to get the lowest in June and added significantly then. So I think the markets [have] priced in much of the apocalypse. Everything thinks “well, it all has to go down at the next earnings stage.”
Despite a series of rate hikes and hawkish sentiment from the Federal Reserve, Pal still says he expects the Fed to swing back to lower interest rates, boosting risk assets.
“Meanwhile, the bond market is completely out of control with every other macro and every other asset class at a rate that has never happened in history before, and this is going to accelerate the problems we are facing.
But ultimately, I remain convinced that bond yields will fall much more sharply than people expect over time, and the Fed will be forced to change its stance.”
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Featured image: Shutterstock/Pattern Trends/Nikelser Kate
