Part 6/8:
Concluding the episode, the conversation culminates in speculations on impending liquidity adjustments by the Federal Reserve. Both Steno and Pal acknowledge the possibility of implementing a strategy that might resemble quantitative easing without explicitly stating it.
They stress that navigating this landscape requires not only a keen eye on market signals but also a nuanced understanding of how liquidity influences all financial realms, from traditional bond markets to cryptocurrencies. Discussing strategies, Pal suggests that those looking to bet against the uptrend of the dollar should consider asymmetrical trades—or more straightforward approaches—such as crypto investments that typically thrive on increased liquidity.