In the last 24h I’ve seen many headlines with Raoul Pal (here is a short interview), claiming that the Boomers have a large portion of their pension in a stock market. Their average age is ~66, thus they will want to start withdrawing it soon.
On the other side of the equation there are companies with a huge amount of debt, which was financed by these Boomers.
The government consists mostly of Boomers too and it’s in their best interest to prevent the pension system from collapsing. Thus they’re printing the money.
Since stock market and housing markets have been at all time highs, Millennials could not afford much, as their net worth is not that high (yet).
So Raoul claims that allowing companies to accrue such huge amounts of debts was a structural flaw, which will eventually break the entire system and the stock market will crash and then move sideways for decades. His proposed solution for Millenial investors is to buy Bitcoin, which will have 100x valuation.
I’d tend to agree with the first part - the Boomer Feds will do anything to save their own finances.
I’m skeptical with his solution with Bitcoin though. I know there is finite number of BTC, but what would have to happen to make it 100x? And why BTC and not some other crypto?
What do you guys think?