Stocks set to slideGuru watch
Felix Zulauf, the founder and head of Zulauf Asset Management, is “seldom wrong” about markets, says Wirtschafts-woche. His warning in 2008 of trouble ahead for the wider economy proved prescient. Today, Zulauf is still gloomy.
Felix Zulauf, the founder and head of Zulauf Asset Management, is "seldom wrong" about markets, says Wirtschafts-woche. His warning in 2008 of trouble ahead for the wider economy proved prescient. Today, Zulauf is still gloomy.
With monetary policy having no impact on demand in debt-soaked economies, and fiscal policy now "contractive, not expansive", the outlook for growth is clouding over, he says in Barron's. Given their weak fundamentals, "economies around the world most likely will be in recession next year". Longer term, the growth outlook is discouraging as we have so far failed to "bite the bullet" and tackle our massive debt load. "We have begun "the Japanification of the western world".
As for stocks, the S&P 500 is set to fall below its recent lows in the autumn. "Once the S&P falls under 1,000" or so next year, the US Federal Reserve will attempt to ride to the rescue again with more liquidity. With confidence in our currencies, policymakers and central banks are "going down the drain", says Zulauf, while gold will climb. "Own a lot" of it, "and don't have debts".
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
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
RICS: homebuyers are returning after stamp duty shock
The housing market has been subdued since stamp duty thresholds dropped in April, but there are signs of a recovery
-
Reducing cash ISA limit will make lending difficult and expensive, warn providers
An open letter from the Building Societies Association has urged the chancellor to keep the cash ISA limit at £20,000. We look at whether a smaller cash ISA allowance will make it harder to get a mortgage or loan