Felix Zulauf, a Swiss hedge fund manager, has an extremely dark forecast for the world.
He recently participated in Barron's Roundtable.
He recently participated in Barron's Roundtable.
As for the euro, it is a misconstruction.
As I said in January, I expect the disintegration to begin in the
second half of this year. That should lead the world into financial and
economic chaos. My two major themes into 2013 are euro disintegration
and China weakness, due to the bursting of a real-estate boom.
On the credit markets:
It is an explosive cocktail. The tower of
debt is compounded by the gigantic over-the-counter derivatives market.
In the past 10 years the notional value of derivatives worldwide has
grown from $100 trillion to almost $800 trillion...
The potential exists for a broad-based
nationalization of the credit system, capital controls and dramatic
restrictions on financial markets. Some might even be closed for some
time...
We are witnessing the biggest
financial-market manipulation of all time. The authorities have
intervened more and more, and thereby created this monster. They might
change the rules when the game goes against their own interests.
Zulauf likes cash, recommends shorting emerging markets (EEM), and would but gold if it falls to $1,500.
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