Raoul Pal's View on Tech and Bitcoin
Raoul Pal argues that crypto and tech stocks are not in a bubble, as they sit within one standard deviation of their trend.
He claims that price-to-earnings (P/E) narratives miss the impact of debasement on prices, and that global liquidity and debt cycles drive current prices.
you cannot label markets a bubble when both tech and crypto remain under one standard deviation from their long-term trend
Pal contrasts the current situation with the late 1990s, when valuations exceeded trend bounds, and asserts that fiat currency debasement inflates prices.
He notes that if a currency debases at 11 percent while the real economy grows at 2 percent, P/E ratios will double in around eight years.
Author's summary: Raoul Pal disagrees with bubble warnings.
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