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Raoul Pal: The Journey Man cover image

AMA: How The Everything Code Changed The World Forever ft. Julien Bittel

Raoul Pal: The Journey Man

NOTE

Liquidity Over Rates: The Real Market Driver

A higher rate environment does not necessarily correlate with poor equity market performance, as evidenced by historical data from 1994, where despite rising rates and inflation, equity markets thrived, marking one of the best periods in history. Stability in interest rates can be more significant than the rates themselves, as liquidity plays a more crucial role in driving market dynamics. Rates tend to lag behind liquidity conditions, suggesting that market actors should prioritize liquidity when assessing market trends rather than focusing solely on interest rate fluctuations.

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