“Everything Is Connected” and the Next Big Market Cycle

Investors often look for a single factor that explains market movements. But history shows that the most powerful cycles aren’t driven by just one cause—they happen when multiple forces converge at the same time.

This is the central idea behind what Raoul Pal calls the “everything code”—a framework that also aligns with perspectives from Anthony Pompliano and other forward-looking investors. The thesis is simple yet profound:

When transformative technologies expand simultaneously and liquidity is abundant, asset prices tend to rise for years.

In this article, I’ll break down the forces at work, why they could fuel a lasting bull market, how investors can position intelligently, and which risks must be kept on the radar.

The Two Core Forces of the “Everything Code”

1. Accelerating Technology

Right now, we are living through an unprecedented wave of technological acceleration. Several trends are converging at once:

Artificial Intelligence (AI): Large language models, AI copilots, and autonomous systems are spreading rapidly into every industry.
Semiconductors & Chips: Companies like NVIDIA, AMD, and others are powering the computing revolution with increasingly powerful GPUs and specialized hardware.
Data Centers & Infrastructure: The backbone of AI adoption requires massive investment in data centers, servers, and energy.
Automation & Robotics: Businesses are deploying robots and AI systems to improve efficiency, reduce costs, and increase margins.
Crypto & Tokenization: Beyond speculation, crypto is entering the real economy through payment systems, stablecoins, and digital asset tokenization.

This acceleration is not happening in isolation. These innovations reinforce each other, creating compounding productivity gains and entirely new business models.

2. Currency Debasement & Monetary Backdrop

The second force is monetary. Over time, fiat currencies lose purchasing power. Why? Because governments and central banks expand money supply to finance deficits and stimulate growth.

This dynamic—currency debasement—tends to favor assets that are:

Scarce (limited supply): Bitcoin, gold, and even prime real estate.
Growth-oriented (expanding earnings power): Quality equities, especially in technology.

Cash sitting idle often loses real value, while capital allocated to productive or scarce assets tends to appreciate over long cycles.

Why This Could Fuel a Lasting Bull Market

Put these two forces together—explosive technological growth + abundant liquidity—and you have the recipe for a potential multi-year bull market in U.S. equities and beyond.

Consider what’s happening now:

Massive CapEx in AI: Companies are spending billions on computing infrastructure, energy, and advanced chips.
Automation Improving Margins: Businesses that adopt AI and robotics can expand profit margins while cutting costs.
Platforms with Network Effects: The more users a platform attracts, the more valuable it becomes—leading to self-reinforcing growth.
Global Search for Returns: In an environment where cash yields little over the long term, capital naturally flows into scarce, high-quality assets.

This is not magic. It’s basic supply and demand—reinforced by rising productivity.

How I Think About Positioning

For investors navigating this environment, here’s a practical roadmap:

1. Focus on Growth Companies with Durable Moats

Look for businesses positioned to benefit from technological acceleration, with strong management, innovative products, and sustainable competitive advantages.

2. Adopt a “Tech Barbell” Approach

On one side: platforms (cloud, data, AI software).
On the other: picks and shovels (semiconductors, data centers, infrastructure, energy suppliers).

This ensures exposure both to the end applications and the foundational enablers of the cycle.

3. Add Crypto Responsibly

Start small—Bitcoin and Ethereum are natural starting points. Crypto can serve as an asymmetric bet on adoption and a partial hedge against currency debasement. But size it responsibly.

4. Apply Clear Risk Rules

Use dollar-cost averaging instead of trying to time perfect entries.
Rebalance periodically to lock in gains and control risk.
More advanced investors can use protective puts for downside insurance.

5. Set Realistic Expectations

Even in the strongest bull markets, drawdowns of 20–50% happen. That’s not a bug—it’s part of the system. Keep cash reserves and a plan for volatility.

Key Risks to Watch

No cycle is without challenges. Among the most important risks are:

Regulation: Both AI and crypto could face tighter rules that slow adoption.
Energy Costs: AI requires massive power consumption—supply or pricing bottlenecks could slow growth.
Valuations: Stretching too far too fast could lead to painful corrections.
Hype Cycles: Over-exuberance often leads to boom-and-bust phases before real adoption stabilizes.

The best defense is to stay anchored in the essentials:

Profitable businesses.
Durable competitive advantages.
A portfolio managed by simple rules you can follow consistently.

A Pro-Risk Decade Ahead?

If this framework proves correct, we may be entering a pro-risk decade—a period where equities, technology, and digital assets benefit from both innovation and monetary dynamics.

Our job is not to predict every twist and turn. Instead, it’s to remain intelligently positioned—with discipline, protection, and a clear process.

The biggest winners will likely be those who stay patient, avoid chasing hype, and focus on fundamentals within this larger cycle.

Final Thoughts

To borrow Raoul Pal’s phrase: “everything is connected.”

The convergence of technology, monetary policy, and liquidity is not just shaping markets—it’s shaping the next decade of opportunity.

The real challenge is not predicting every market swing, but staying committed to a strategy that lets you capture the meaningful part of this move.

So I’ll leave you with this question:

Do you already have a strategy for this new world—or are you still waiting on the sidelines?

Disclaimer: This article is for informational and educational purposes only. It does not constitute financial, investment, or legal advice, and should not be taken as a recommendation to buy, sell, or hold any asset. Always conduct your own research and consult with a qualified professional before making any financial decisions. The author and publisher are not responsible for any actions taken based on the information provided in this content.