Raoul Pal Says Liquidity and the Business Cycle Drive Almost Every Asset Market

Raoul Pal argued that liquidity and the business cycle drive nearly every asset market, with the same economic cycle flowing through stocks, commodities, real estate and crypto. He said that when growth accelerates, credit expands, companies earn more and demand for assets like stocks, copper and oil rises, while at the top of the cycle, higher rates and tighter liquidity can slow growth and eventually trigger bear markets or recessions.
Pal also said global currency debasement runs at roughly 8% a year, pushing scarce assets higher, while wages tend to track much slower economic growth.