Raoul Pal’s Post

🗣️ Liquidity cycles 🗣️ Significance of central bank policies 🗣️ Global debt refinancing dynamics. They explore how liquidity injections correlate with market behavior and how different economic factors, including government policies and demographic trends, shape this complex landscape. [5 key takeaways:] 1/ The "Everything Code" Thesis: Raoul Pal’s theory hinges on the debt refinancing cycle that started post-2008’s financial collapse. Liquidity influx, due to currency debasement, happens roughly every four years. Liquidity drives major bull markets in technology and cryptocurrency. 2/ Liquidity Hierarchy and Drivers: Mike Howell highlights the pyramid structure of liquidity, where central bank balance sheets form the apex, supported by offshore deposits and collateral's role in the shadow banking system. Key drivers include the Federal Reserve (Fed), People’s Bank of China (PBOC), and collateral volatility, measured by indices like MOVE. 3/ Global Cross-Border Flows: Investment flows have become global, significantly impacting markets. The debasement effect increases P/E ratios across time, diluting value investing principles. 4/ Central Bank Strategies: U.S. Treasury’s strategies to manage the market, such as the issuance of short-dated bills, and the Fed’s balance sheet decisions. Implementing Basel IV regulations could force banks to hold more bonds, impacting market liquidity. 5/ Emerging Markets Dynamics: Discussion on China's economic state, capital flight, and the impact on the global economy. The interplay of China’s liquidity measures and U.S. policies.

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Can you share a helpful tip for dealing with market volatility? ✏️ Their are specific killzones where liquidity is injected into the markets due diligence and take advantage of this the algorithm is not random market will always deliver liquidity and rebalance imbalances

I continue to be concerned, and talk about the possibility of a liquidity squeeze in financial markets, and the potential for disruption in precious metals and natural resources equity markets.

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Unlike the robust liquidity and narrower bid-ask spreads during standard trading hours, after-hours present a different scenario. Read the full article: Exploring the Strategy of Selling Options After Hours ▸ https://lttr.ai/AReR5

Unlike the robust liquidity and narrower bid-ask spreads during standard trading hours, after-hours present a different scenario. Read the full article: Exploring the Strategy of Selling Options After Hours ▸ https://lttr.ai/AReIy

📈💡 Mastering US 100: Discover My Entry & Exit Strategies for Friday's Trade! 🚀 Dive into the details of this profitable trade, learn about liquidity zones, market structure shifts, and why weekends can be risky. Don't miss this in-depth analysis! #Trading #Forex #StockMarket #Crypto #Investing #TechnicalAnalysis #FinancialEducation #TradingStrategy #MarketAnalysis #TradingTips #RiskManagement #DayTrading #SwingTrading #MarketForecast #TradingCoach #TradeSmart #ProfitableTrading #MarketInsights #TradeWithConfidence #LearnToTrade

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