Zulauf, as usual, has a very insightful (albeit somber) outlook – though nothing too extreme for readers of this blog to handle. His current working hypothesis for the next 4-6 years is an inflationary depression, where the S&P bounces between 1000 and 1500, with the direction depending on whether or not the QE faucet is running. He does believe that we’ll see more rounds of QE, though he doesn’t think the social mood will allow it until something bad happens (next year or so).
He’s a big fan of conservative investments, including gold, which he views as a currency in this environment – an important hedge against the ongoing competitive devaluations of fiat currencies.
- 2nd Half Outlook for Barron’s Roundtable
- Interview with FT.com: Europe “Looks Dangerous”
- On QE Infinite and the Financial End Game