Former Goldman Sachs Exec Calls Bitcoin a 'Life Raft' For the Average Investor

www.cryptoglobe.com 2021-02-22 06:00
Reading time: ~2 m

Former hedge fund manager Raoul Pal says Bitcoin provides investors the greatest opportunity to escape a cycle of poverty and economic despair. 

Prior to founding macro economic and investment strategy research service Global Macro Investor (GMI) in 2005, Pal co-managed the GLG Global Macro Fund in London for global asset management firm GLG Partners (which is now called “Man GLG”). Before that, Pal worked at Goldman Sachs, where he co-managed the European hedge fund sales business in Equities and Equity Derivatives. Currently, he is the CEO of finance and business video channel Real Vision, which he co-founded in 2014.

The Real Vision CEO published a series of tweets on Friday questioning the impact of the Federal Reserve’s money-printing on equities and other financial markets. 

Pal said equities were expensive, but not “wildly so” and mostly reflected earnings growth over the past year. He pushed back on the notion that the world was entering into an asset bubble created by fiscal policy in response to the COVID pandemic. 

When we look at SPX vs M2, the other measure people look at, equities are expensive but not wildly so…(its sort of just earning growth) pic.twitter.com/SGygMSKLpL

— Raoul Pal (@RaoulGMI) February 16, 2021

Pal went on to show the real market problem was tied to stagnation in wages, which he said had underperformed all assets over the past 50 years. 

However, the situation is much worst when you look at wages, which have barely moved in 50 years in real terms, underperforming all assets massive due to massive demographic bulges, globalisation and technology.

— Raoul Pal (@RaoulGMI) February 16, 2021

Pal said wages, when compared to equities and other assets, such as gold, provided “no investment opportunity,” and showed the median American had lost 90% of their purchasing power against property over the last half-century. 

Pal continued, saying Bbitcoin has provided an opportunity for average people and retail investors to offset the discrepancy in wages and purchasing power. He called Bitcoin the “only chance” for the average person to escape a cycle of economic struggle and pointed out the particular importance for young people to invest in the crypto-asset. 

It is literally the only chance the median person has to change this dynamic, especially young people who are in huge competition for jobs with boomers and their own massive generation and with technology and workers around the world, struggling to survive too.

— Raoul Pal (@RaoulGMI) February 16, 2021

He also called Bitcoin the “only life raft” with the opportunity for most people to change their financial situation and to fix the broken economic system.