In a recent interview, former Goldman Sachs executive Raoul Pal talked about the impending global economic slowdown and what he’s doing to prepare for it. Explaining his crypto money portfolio, the economist also explained the logic of the strategy he had established.
Prior to founding the macroeconomic and investment strategy research service Global Macro Investor (GMI) in 2005, Pal was co-director of the GLG Global Macro Fund for global wealth management firm GLG Partners (now “Man GLG”) in London. made. Prior to that, Pal worked at Goldman Sachs where he co-managed the European hedge fund sales business in “Equities and Equity Derivatives”. He is still the CEO of Real Vision, a finance and business-oriented video channel, which he co-founded in 2014.
Pal made his comments in an interview with crypto phenom Anthony Pompliano (aka “Pomp”), Co-Founder of investment firm Morgan Creek Digital Assets and also host of “The Best Business Show”; This episode was broadcast live on YouTube on October 4th.
According to information quoted by The Daily Hodl:
“My work shows that there is a possibility that the global economy will slow down quite significantly next year. And yet we may see more financial incentives coming in. That’s why I look at this event differently than most people. There is a growth in the numbers that everyone, including me, spent on their house in the previous year.”
Pal also pointed to rising oil prices and daily living expenses that have reduced the affordability of goods. He also noted that rising prices will lead to slower-than-expected economic growth, which will result in “more stimulus”.
The Real Vision CEO believes that governments will respond to the crisis with a similar approach to the COVID-19 pandemic by printing more money, potentially raising the prices of assets like stocks and crypto.
Pal said there is “no way” that governments have to create growth to keep the economy afloat. He said the chances of the economy continuing upwards are “low”, pointing to numerous potential confounders in the pursuit of economic growth.
Speaking about his crypto portfolio, Pal said:
“My current portfolio is probably 70% ETH (Ethereum), 5% BTC (Bitcoin) and then others. So why this portfolio? This portfolio is not against Bitcoin, not against anything else. Because I’m a financial market expert and I use risk curves. So at certain points in the cycle, in the middle of a bull market, we want to take as much risk as possible. So I want to go to the more speculative end of the market.
“I’m focused on the fact that I think Ethereum will see more flows, it’s just early in the ETH adoption cycle and this will likely drive prices up more than Bitcoin. And that seems to be working now.”
https://www.youtube.com/watch?v=L8kilExgrk8
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