After Blasting Bitcoin (BTC), Goldman Sachs Is Now Shorting the U.S. Dollar
Goldman Sachs is betting against the U.S. dollar right after downplaying Bitcoin (BTC) and the increasing institutional investments in the top cryptocurrency.
During an investment advisory call for its clients last week when the banking giant blasted the king coin as “not a viable investment”, Goldman also revealed doubts that the U.S. dollar will perform well amid the reopening of economies worldwide.
Now, it’s becoming clear that Goldman’s strategy is to short the world’s reserve currency.
Goldman strategists, led by global foreign exchange heads Zach Pandl and Kamakshya Trivedi, are under the impression that the price of the U.S. dollar will fall because investors will likely move their funds from the traditional safe-haven currency to the stock market when the economy recovers.
They also recommend shorting the U.S. dollar against the Norwegian krone as they expect Norway to quickly rebound from the coronavirus crisis.
“(Norway’s) demographics and domestic medical infrastructure make it better equipped for the outbreak than many other countries, and its strong fiscal position puts it at a distinct advantage.”
“While others are forced to either limit their fiscal policy support or dramatically increase borrowing – both potentially currency negatives – Norway is able to repatriate funds from its investments abroad.”