Wednesday, August 24, 2016

Felix Zulauf* Sees A Final Leg Of The Bull Market
"We’re currently in an environment completely different from anything money managers have seen. The most important aspect of what is occurring now is the shift in the 'zeitgeist,' or prevailing spirit of the time .. I think the average guy is angry with the political leadership, and that’s true for the U.S. as well as here in Europe .. In Europe, we have compounded all of those problems by the introduction of the euro, a monetary union that does not work and puts the majority of the economies in a deflationary straightjacket, and really making the citizens of those countries poorer .. Either the establishment adapts to the changes the public wants—or they will get kicked out and replaced by new political staff that will run policies desirable to the people. The latter is a faster change, and the former is a slower change. But change there will be .. If you look at trade in U.S. dollar terms, it is decisively below the peaks of 2014 .. And I think that decline and erosion will continue .. The changes we’re likely to see with a shift to fairer trade will include trade disputes, terrorism, mass migration and other conflicts. These changes will mean less prosperity, less growth and probably a major economic crisis at some point .. As a result, equities may see lower valuations. For now, though .. The bull market in U.S. equities will continue and will probably run until late this year or the early part of next year .. I do not know what will make it end, but I do believe it’s the final leg of the bull market .. It will probably come to an end because of economic problems when there are cracks in the global economy."
link here to the reference

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