AI Rally Fails to Lift Home Prices as Wall Street Sees Only Financial Gains
Jordi Visser, a Wall Street veteran with over 30 years of experience and head of AI-macro research at 22V Research, believes that the current AI-driven stock market rally is benefiting financial assets but not home prices. As a result, many Americans are being left behind.
Visser attributes the recent selloff in Bitcoin (BTC), gold, and silver to a 'debasement capitulation,' which he describes as the unwinding of a crowded trade that paired long positions in those assets against bets that bonds would fall. This trade had become heavily owned by wealth-management firms and pension funds before beginning to unwind after Federal Reserve Chair Kevin Warsh adopted a more hawkish tone, strengthening the US dollar.
Visser argues that nothing has fundamentally changed, citing persistent government deficits and rising debt levels as reasons why the underlying thesis remains intact. He also points out that Bitcoin's weakness stems from portfolio rebalancing, short-selling, and institutional skepticism rather than deteriorating fundamentals.