Raoul Pal, a former head of European hedge fund sales at Goldman Sachs, is preparing for the global financial system to experience a massive crash.
In a recent podcast with host Howard Lindzon, the investment strategist and founder of Global Macro Investor and Real Vision Group predicted a 20% short-term drop in stocks before going up for three or four months. In the long term, however, Pal expects many companies to go down the drain as the novel corona virus cripples several sectors of the economy.
I think there is a good chance that this will be a much longer event in terms of economic impact … And I think it will be the biggest bankruptcy event in history.
Pal believes that the coming crisis will be so bad that it will permanently change the psyche of the next generation.
This is a generation change … What it does is that the younger generation will see everything differently forever. With a certain mistrust, she will look at the pension system, which will fail. They will look across the securities markets in a way that will make them think, “It’s just not for me.” You will have different opinions on risk and savings than previous generations.
To illustrate how an entire generation’s attitude to the financial system can change, Pal said to look at the millennials.
The millennials were damaged in 2000 and 2008. They don’t trust the financial system … they will reject what was before them and they will accept things that are new and different.
To protect himself from the aftershocks of the coronavirus pandemic, Pal reveals that he has relocated a significant portion of his assets to Bitcoin.
Of the liquid net cash that is available to me … my allocation, in which I would probably like to be involved, perhaps even longer, in the next 12 months, consists of 25% Bitcoin, 25% Gold, 25% Cash and 25% Trading Opportunities.
Morgan Creek co-founder predicts Bitcoin’s all-time high in September
But not only Pal, but Morgan Creek co-founder Jason Williams is extremely optimistic about Bitcoin (BTC). He expects the world’s leading cryptocurrency to perform spectacularly in 2020, despite the economic turmoil that has rocked almost all industries as the Covid 19 pandemic continues to spread. The managing director of the digital asset management company says he believes the leading cryptocurrency will top its all-time high of $ 20,000 in September.
Despite general optimism, Williams says he’s actually bearish in the short term and doesn’t think Bitcoin will recover before the halving that will take place in May. If the amount of bitcoin miners earn to supply the network is halved, Williams said, many could be forced to sell their BTC holdings to keep the lights on, creating an opportunity for investors.
Most think that [BTC] will go down before and during halving. I’m just scratching my head. I think it could go even deeper because the miners surrender and the selling pressure … I stay tuned. And come in opportunistically with fresh capital. It doesn’t work for everyone, but that’s my personal strategy.
Although Williams believes Bitcoin will pull $ 20,000 out of the market this year, option traders don’t share his ultra-bullish forecast. Data analytics firm Skew shows that the options market gives Bitcoin a 3% chance of rising to a new all-time high by September 20.