Macro investment expert Raoul Pal is warning of an under-the-radar economic trend shift lurking within the foreign exchange markets.
The former Goldman Sachs executive points to sudden strength in the US dollar versus the Japanese yen.
“Something big is happening FX… very big. I just don’t know what it means yet…
Dollar JPY is testing the neckline of an enormous 20 year inverse [head and shoulders]…”Â
At the same time, Pal points out that the Euro is on the brink of collapsing through a major long-term support level.
“And the Euro is testing the 40 year trend…”Â
The Real Vision CEO says that if these two trends break, a massive amount of capital may be forced to move from each respective market and flee into US bonds and equities, and possibly crypto and precious metals.
“This is a structural shift of some enormity. If these break then two of the largest pools of capital in the world might end up back in the US bond market or equity market or even crypto or gold.
Pay attention but remember – very long-term trends take a LONG time to play out.”
Pal also says that he doesn’t subscribe to the doom and gloom mentality of some investors who are “waiting for the world to end.” He says that he sees embracing emerging technologies like Bitcoin (BTC) and Ethereum (ETH) as the pragmatic move to survive the accelerating rate of change in global financial markets.
“It is also mentally exhausting in looking for bogey men in every closet, predicting the world is going to end and there will be a price to pay for printing money etc.
Reality is much more nuanced. And we have the clear tools to not only protect ourselves but to profit too…
That is what digital assets are all about with BTC and ETH playing the biggest role and Web 3 changing all future business models entirely. Anti-fragility is the name of the game and on top of that Exponential Age technology will rise relentlessly…
You may hate green energy, hate AI, hate the rise of the robots, hate crypto, hate genetic sciences, hate space industries, hate big data, etc. Technology doesn’t care. Nor does the future. It cares not about the past.
Embrace it or die angry. Your choice.”
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