Felix Zulauf: World Headed Toward 1987 Style Market Collapse
February 14, 2013
Today world renowned money manager Felix Zulauf told King World News that global stock markets are careening toward a 1987 style market collapse situation. Stock markets plunged in 1987, and the world is at risk of that situation developing once again according to Zulauf. Felix Zulauf, founder of Zulauf Asset Management and 20+ year Barron’s Roundtable panelist, also said gold will head to new all-time highs during the coming market chaos.
This is the first of a three part written interview series that will be released on King World News today. In these interviews the legendary money manager discusses why he believes central planners will fail, how this will lead to systemic collapse, gold repatriation, what investors should be doing with their money right now, how they can protect themselves going forward, and much more.
Eric King: “Felix, you’ve had a chance to look at how things evolve globally each year as we go through this cycle. How do you see the end game playing out at this point? How do you think this will end? Meaning, if the world doesn’t solve its situation in a conventional manner, as you said earlier, will we see a greater degree of chaos than the world witnessed in late 1979, early 1980?”
Zulauf: “At some point in time we have to get rid of the debt that we have. Obviously central banks are trying to do that by financial repression. The consensus among the investment community is that financial repression will work. I’m not so sure.
Financial repression means that they put interest rates below the inflation rate, and by doing that the debt to GDP levels of the different segments in an economy, the households, governments, etc., drops down over time. Drops down to more reasonable and manageable levels. I’m not sure that can be achieved….