Geopolitical Shifts and Economic Challenges

Former hedge fund manager Felix Zulauf, founder and president of Zulauf Consulting, returns to The Julia La Roche Show for episode 220 for his annual outlook interview to discuss why U.S. stocks are in a bubble and what could break it. In this wide-ranging conversation, Zulauf explains why watching the Japanese yen is critical for understanding when global liquidity might dry up, warns that AI stocks could fall 50-70% when the bubble bursts, and shares his view that 2025 will be a "mini version" of the decade's roller coaster ride for markets. He also discusses why Trump's proposed tariffs could create significant economic headwinds, explores why Europe and China face structural challenges, and outlines his targets for Bitcoin ($115,000-$130,000) before a potential 80% correction.

https://www.felixzulauf.com/

0:00 Welcome back Felix Zulauf

00:50 Macro picture

03:47 China's structural challenges

06:14 Germany and Europe's structural malaise

09:36 US labor market dynamics

12:46 Impact of government spending cuts and tariffs

16:30 US stock market bubble discussion

21:14 Global liquidity and Japanese yen dynamics

25:14 Market bubble indicators and timing

28:39 Decennial pattern analysis

32:36 Discussion of inflation dynamics

36:36 Bond market paradigm shift

41:20 Commodity sector leadership outlook

45:21 Trade war risks and historical parallels

48:56 Gold and Bitcoin outlook

51:20 Financial system stability concerns

https://www.felixzulauf.com/