U.S. stocks, the U.S. dollar index, Bitcoin, and gold are all at high levels, and a financial tsunami has taken shape. In the past month, the U.S. dollar index has risen from about 104 to 108, as I estimated, and it is very likely to break through 110 before Trump takes office.
Have you been thinking about where the Shanzhai liquidity has gone in the past year?
I can answer you very clearly that global wealth is currently highly concentrated in the hands of a few people, and at the same time as the high concentration, there are differences, forming a polarized situation. There must be a crisis to detonate the liquidity concentration problem, perhaps starting from the United States, or perhaps from emerging markets, but there must be a crisis to pay for this "capital concentration difference".
U.S. stocks, Bitcoin, gold, and the U.S. dollar index are all in a deformed state. It is normal that ordinary people, including the middle class, have found it more difficult to make money in the past year. Most of the wealth has been used to buy high-premium, low-growth high-quality assets.
I hope that this period will trigger a crisis from the worsening of the US fiscal deficit, and the simultaneous decline of the US dollar index and US stocks will replenish liquidity for emerging markets around the world, including the cryptocurrency market, creating a new round of "super bull market".
In the period of tightening liquidity, holding cash for large institutions is equivalent to holding opportunities. I agree with Buffett on this point. In the past year, I also agree with his selling stocks and hoarding cash. I think it will only take 3 to 7 months for Buffett to complete the last dance of his life.
In the past period of time, I have not seen a single thing that can reverse the high inflation and low growth information, and I have seen more differences. It is also a risky opportunity for cryptocurrency!
