Raoul Pal, former Goldman Sachs executive, expects the world’s financial system to see a massive hurt, according to the Daily Hodl website.

The executive has recently said in an interview with Lindzanity podcast that equities would plunge 20 percent in the short term before a three or four-month recovery. However, he expects several firms to fail in the long-term as the coronavirus would weigh on multiple economic sectors.

The investment strategist went up to say:

“I think the balance of probabilities are that this is a much longer event in terms of the economic impacts… And I think it’s going to be the largest insolvency event in all history.”

Upcoming crisis to impact next generation

Pal, who also founder of Global Macro Investor and Real Vision Group, predicts the upcoming crisis to be so bad that it would impact the next generation.

“This is a generational change… What it does is the younger generation will look upon everything differently forever.

They will look upon, with some suspicion, the pension system which is going to fail in this. They’re going to look across securities markets in ways that they will think ‘this is just not for me.’ They will have different opinions on risk and savings than previous generations.”

In addition, the executive explained how the crisis can change the entire generation’s attitude towards the financial system:

“Millennials have already been scarred by 2000 and 2008. They don’t trust the financial system… They will reject what went before them, and they will embrace things that are new and different.”

Shifting focus to Bitcoin

To overcome repercussions of the coronavirus crisis, the executive indicated that he is investing a big portion of his wealth in Bitcoin.

“Of the liquid net cash that I have available… my allocation that I want to be in for the next 12 months probably, maybe longer, is 25% Bitcoin, 25% gold, 25% cash, and 25% trading opportunity,” Pal said.

Recently, Cryptolydian has reported that Millennials and Generation Xers in the U.S. may inherit nearly $70 trillion from Baby Boomers in the years to come.

Thus, if Millennials in the US were to spend nearly 5 percent of their inherited funds in Bitcoin (BTC), they would push the price up to $350,000 by 2044, according to a recent study by Kraken Intelligence.

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