Felix Zulauf: The Secular Bear Market Will Last Another 5 Years

Good thoughts here by Felix Zulauf of Zulauf Asset Management (thanks to Barry Ritholtz). Zulauf believes the global economy remains in a deep contraction that has been only papered over by government spending. But he sees austerity setting in now and now contributing to the decline in growth.

He predicts another 5 years in the secular bear market with the S&P 500 dropping to 500 by the middle of the decade.

Additional summary:

  • Austerity measures cannot work in a democracy.
  • Gold is a currency, not a commodity.
  • Prepare for an inflationary depression over the next 3 to 5 years.

You can hear the entire interview here.

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