03/21/2017 - Felix Zulauf: Rising Inflation Is A Global Phenomenon
“France could be a game changer, and very late this year or early next year, Italy could be a game changer .. The problems in Europe started with … the introduction of the euro .. The currency is not right for anybody. It is cheap for Germany, it is too expensive for Italy, and it creates all sorts of messes.”
If Marine Le Pen wins in France, who wants to pull out of the EU, Zulauf believes we’ll see a selloff in the the euro and European assets .. He also predicts: The world will be very fearful of Europe entering the next stage of a slow, decaying process of the current institutional architecture, which will cause capital to move out.
Zulauf says what we are seeing is the beginning stages of monetary policy changes towards less easy-money and even toward some tightening. That means the major force behind this bull market is going to disappear.
Inflation — specifically core inflation and not headline inflation — is coming back, he said, and will continue to creep upward during the rest of this year and next year. This is a global phenomenon .. “The impact could be quite dramatic .. Inflation will continue to creep up, and inflation in many countries is already above declared target levels.”
“Because of the excesses we see today, I think we will see an above-average bear market that will probably bottom in 2020 – I cannot say how deep it will go – I just want to first see the highs in place and all the non-confirmations, which may be seen in the next six months.”
