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The Biggest Bubble Yet? Felix Zulauf Warns of Extreme Market Risks

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Dec 18, 2024
Felix Zulauf, a legendary investor known for his bold market predictions, delivers alarming insights on current U.S. market valuations and liquidity issues. He warns of a potential crash reminiscent of the dot-com bubble and discusses the hidden impacts of inflation. Felix also highlights Europe and China's economic struggles, raises concerns about trade wars, and calls for strategic investing amid high volatility. With predictions for 2025, he sheds light on the challenges facing global economies and the rise of right-wing politics.
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INSIGHT

US Economic Outperformance

  • The US economy is currently the strongest globally, driven by labor demand exceeding supply for the first time.
  • This has led to higher real wages and prevented a recession, despite indicators.
INSIGHT

US Market Bubble

  • Despite strong performance, US market valuations are extremely high, suggesting a bubble.
  • The key factor is liquidity, which has been artificially boosted but is now drying up.
INSIGHT

Market Forecast and Volatility

  • Most market forecasts cluster between 5,500 and 7,000 for the S&P 500.
  • Zulauf expects significant volatility, with potential extremes above 7,000 or below 5,000, possibly both.
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