Lyn Alden: Deficits Make Equity Bears Bullish on Fiat

Eric Balchunas amplified Lyn Alden's point that persistent 7% of GDP deficits represent the core blind spot for equity bears and macro doomers.

Alden notes that fading stocks in this environment equates to going long fiat, while hard assets have led since COVID with gold, BTC, quality equities and fixed-rate real estate outperforming amid one of the worst bond stretches in decades.

Price action on the 4h chart shows BTC at $81349.89 inside the Bollinger Bands with bearish structure as EMA50 at $82403.97 and EMA200 at $82107.58 cap upside while MACD registers a death cross at -148.79; RSI at 39.88 leaves room for a test of lower band support near $80491.45 before any sustained move higher.