A Goldman Sachs top executive believes the value of the US dollar has further to fall while predicting stocks may reach new all-time highs.
In a new analysis, Ashok Varadhan, Goldman’s co-head of global banking and markets, says that gold and Bitcoin (BTC) may be an effective hedge against currency devaluation amid a ballooning national budget deficit.
“Many investors have become more bearish on the US dollar amid fiscal concerns, and Goldman Sachs Research expects further depreciation in the currency. But Varadhan points out that the US isn’t the only developed market with an unusually large budget deficit. The US budget deficit this year is estimated to be about 6% of GDP, while the deficit of France is 5.5%, and the UK 3.6%, according to Goldman Sachs Research. Varadhan suggests that assets like gold and Bitcoin could climb relative to fiat currencies.”
Varadhan also says that stocks may continue in an uptrend because President Trump’s reduction in government regulations may help stimulate the economy and advancements in artificial intelligence (AI) may help companies generate larger profits.
“Varadhan says he’s ‘super bullish’ on equities, even though they’ve reached all-time highs. There’s a tailwind to the US economy from deregulation, and it will be crucial to assess whether the US manages a fair recalibration of trade and continues to attract the best, brightest, and most able people to its labor market…
We’re not even in the first inning of companies implementing AI. Once that company implementation happens, you get that productivity dividend.”
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The post Goldman Sachs Executive Forecasts Further US Dollar Decline, Says He’s ‘Super Bullish’ on Stocks – Here’s Why appeared first on The Daily Hodl.
