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.