Felix Zulauf, a former UBS strategist who founded his own hedge fund in 1990, is often gloomy, but also often right. He issued a bearish macro call in early 2008 and predicted a market rally early the following year. Judging by his remarks in the Barron's mid-year roundtable, he's still downbeat.
Things appear to be getting better slowly, but "the world economy is weaker than people think it is", he reckons. Bond yields "won't rise"; indeed, they "might come down in major countries by late summer". Stocks could rally into the summer, but this will be a last gasp, while emerging-market currencies and equities, along with commodities, are set to keep disappointing. "It is time to reduce portfolio risk."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
‘Inheritance tax insurance’ enquiries are soaring – but is it worth it?Premiums for whole of life insurance can run to £5,000 a month to cover a £300,000 inheritance tax bill, with policies costing more the older you take them out.
-
MPs warn over Lifetime ISAs which could leave savers out of pocketThe Treasury Committee has highlighted confusion around the Lifetime ISA withdrawal charge, which risks consumers losing “a significant part of their savings”
