Felix Zulauf: the world of managed economies

Share

• Copy link
• Facebook
• X
• Linkedin
• Whatsapp
• Pinterest

Share this article

Join the conversation

Follow us

Add us as a preferred source on Google

Newsletter

Get the MoneyWeek 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.

Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors

---

By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

You are now subscribed

Your newsletter sign-up was successful

---

Want to add more newsletters?

Twice daily

MoneyWeek

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.

Signup +

Four times a week

Look After My Bills

Sign up to our free money-saving newsletter, filled with the latest news and expert advice to help you find the best tips and deals for managing your bills. Start saving today!

Signup +

---

An account already exists for this email address, please log in.

Subscribe to our newsletter

"We have left the world of free markets and entered the world of managed economies," wealth manager Felix Zulauf tells US financial newspaper Barron's. Central banks took over economic policy after the financial crisis, and "run the show to this day". It's just one of many "tectonic shifts" that the investment veteran has witnessed over his long career in markets.

Another shift is that "the globalisation movie is running backwards... which could create problems for multinational companies". US president Donald Trump has been elected to tackle China's unfair trade practices which have seen middle-class incomes in the US and Europe remain static, even as corresponding incomes in emerging markets have soared.

However, while China may lose a few trade battles, it will "eventually win the war" by building trade alliances with other powers across the globe, including Europe, over "the next six or seven years". Zulauf also expects China to devalue its currency by 15%-20% in the relatively near future, as it aims to revive its slowing economy and counter the effects of tariffs.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

Zulauf remains bullish on oil prices, "because the market is tight", with demand solid and supply from Iran and Venezuela in decline. "One morning, we'll wake up and crude will be at $95 or $100 a barrel." That's good news for US shale oil producers and for the companies that provide them with equipment and services. He tips the SPDR S&P Oil & Gas Exploration & Production (NYSE: XOP) exchange-traded fund as one way to get broad exposure.