Global macro trader who nailed the 2008 crisis says next 3 months mark ‘edge of the cliff’ for markets—and ‘we’re there right now’

Are investors staring over the edge of the market cliff?

Raoul Pal is an investment strategist, famous writer, along with also a renowned economist. The press people flock to receive his or her views on the investment plans followed by several states because of his exceptionally amazing wisdom and perspectives on investment and economics. He’s constantly on the news to supply his view about the trending issues related to economics and international financial indicator.

Now, in economics, the financial market is a mechanism that allows individuals and entities to buy and sell financial securities including stocks, bonds, currencies, derivatives and commodities and other consumables of value at a low transaction cost and a price that reflects Supply and demand. Both general markets and the New York Stock Exchange (NYSE) trade many commodities and specialized markets such as the Forex market operate trillions of dollars a day.

The most fragile point of world financial markets

It is necessary to highlight that Raoul Pal has told MarketWatch that we are in the ‘most fragile point in global financial markets since the eurozone crisis in 2012’

In this way, Raoul Pal has established that financial markets are at a crucial turning point and Wall Street investors should not look beyond the US dollar to find the clearest signal of the growing tension in the system that could trigger a financial crisis to 2008.

“The conclusion has to be that this is the most fragile point in global financial markets since the eurozone crisis in 2012, and potentially the start of the Great Recession in 2008”, he said.

Certainly, Pal has indicated that the relative strength of the US dollar, measured on a trade-weighted basis, was undulating throughout the world, especially as central banks adopt easy money policies that appear to be more accommodative. that even the Federal Reserve of the United States, driving local currencies down against the dollar.

The dollar is around its highest level from 2002 to July 31, according to the most recent data from the Federal Reserve of St. Louis through Fred on the trade-weighted strength of the dollar against other major world currencies (see table attached).

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Source: Mark DeCambre | MarketWatch