On Saturday, LaDuc took to X to share her insights. She believes that financial conditions are not easing, but are instead being reset to stimulate real growth from Main Street.
Well-known financial analyst Samantha LaDuc has issued a bleak warning about current financial conditions and their impact on both Wall Street and Main Street.
Taking to X, formerly Twitter, on Saturday, LaDuc shared her insights, beginning with a stark statement: “Financial conditions are not easing, they are being reset to push down dollar, yields and oil so as to unwind equity leverage from Wall St and stimulate real growth from Main St.”
This assertion contrasts sharply with the prevailing view among economists, who have recently pointed to a slight improvement in financial conditions, attributing it to the recent decline in Treasury yields from their March peaks.
Highlighting the role of global central bank policy interference and massive liquidity infusions, primarily led by the US, LaDuc further explained how examples of Bitcoin (BTC) troughs were triggered by a falling US dollar. This, she claims, was a strategy to suppress the dollar, yields, and volatility.
“Examples of BTC troughs triggered by falling USD. All the same: i) global central bank POLICY intervened massively to infuse mkts w/ liq (US-led but not limited to); ii) lower dollar, lower yields, less vol, lower oil prices (RBOB futures); iii) triggered by a threat to financial stability (e.g., SVb). Point being: financial conditions easing =/= true goal,” she explained.
Moreover, LaDuc highlighted the shift to fiscal dominance and trade wars, where rising yields inflate assets and falling yields deflate them. This, she claims, stands in direct contrast to the previous macro landscape of rate repression to keep speculation bid.
“The new macro landscape is the reverse of the old one. Now, we have fiscal dominance and trade wars, where +ve yields inflate assets and -ve yields deflate assets (e.g., IVE over the past 3 mths),” LaDuc added.
This unique perspective from LaDuc offers a cautionary tale as investors navigate the volatile and fast-changing world of cryptocurrency and traditional markets.
