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Home / Business / Shocks tower above this bull market, warns the Swiss hedge fund manager

Shocks tower above this bull market, warns the Swiss hedge fund manager



In the autumn of 2018, Felix Zulauf, head of the Swiss hedge fund Zulauf Asset Management, said investors are facing the beginning of a "structural bear market". In other words, not much upside and a central bank limited disadvantage.

"If the market sells 20%, 25% or so, they will support it and the market will recover," he said. "Then it fades again and it goes deeper than last time. This is a very serious, very difficult market.

Shortly after this call, the stock market broke up to begin a new attack on record highs in 2019. Zulauf's attitude was pretty much on the dot, and now he assumes that the current rally is limited and follows a mostly grim assessment of what's next.

Attendance Has Certainly Made Some Epic Ranks Over the course of his long investment career, he has had dropouts, including when he was a top executive at UBS and had completely displaced his clients in 1

987. But it is not the garden that plays a big role in any garden and succeeds in any downturn. He also predicted a rally of 40% for early 2009, marking the bottom of the last bear market.

However, he is back to his bearish behavior in our call of the day .

In an interview posted on the Financial Sense blog, Zulauf believes that a trade agreement between the US and China is likely, but any positive impact on the market will be short-lived. Investors are then confronted with a sales situation.

Meanwhile, Zul said from a macroeconomic point of view, economists are too optimistic about growth prospects, and as he has been saying for some time, the second half is difficult. He sees further negative surprises this year, producing shocks that could ultimately affect all major economies.

In particular, he is looking for the US to grow strongly, with China also facing some headwinds.

"The current optimism that things that have been wrong for quite some time have reached a low point is premature," said Zulauf in an interview. "I think the consensus will be disappointed again in the second half of the year, and that will affect the bottom line of the corporate sector."

The Market

The Dow

DJIA, -0.01%

S & P 500

SPX, + 0.10%

and Nasdaq

COMP, + 0.14%

are all higher. The dollar

DXY, -0.08%

has risen slightly as gold has risen

USA: GCU8

is deeper. Rough

USA: CLU8

is also under pressure. More in Market Snapshot.

European Equities

SXXP, + 0.13%

fell, led by Spanish stocks

IBEX, + 0.01%

after the Socialist Party won the elections on Sunday, but must form alliances to stay in power. Asian stocks

ADOW, + 0.39%

closed mixed.

The Buzz

Apple

AAPL, + 0.52%

reported on Tuesday, so it should be abundant in the next few sessions. Most importantly, investors are prepared to listen to the word and word for what the company wants to do with its huge pile of cash. However, it is likely that Apple will stick to its previous strategy of returning cash to shareholders. The company had net cash of $ 130 billion at the end of 2018.

A bidding war could break out for the hydrocarbon exploration group Anadarko Petroleum

APC, -0.05%

. Days later, the company agreed to sell $ 33 billion to Chevron

CVX, + 0.27%

Anadarko has allegedly now initiated negotiations for a sale to the rival Occidental Petroleum

OXY, -2.55%

say sources cited by Reuters.

More trouble for Boeing

BA, + 0.08%

? Allegedly, the aircraft manufacturer Southwest Airlines has said nothing about it

LUV, + 1.09%

Already in 2017, a security feature on the 737 Max Jets was deactivated, reports The Wall Street Journal.

The map

Tesla

TSLA, + 2.45%

just gave up, it is number 2 on the list of the largest US automakers based on market capitalization. ford

F, -0.58%

has just left the electric car maker behind as its market capitalization approaches that of General Motors # 1

GM, + 0.91%

Ford had the biggest one-day rally on Friday in a decade, while Tesla, which recorded its lowest level since January 2017, is experiencing a steady stream of problems seems to be fighting. Surely we did not hear the last of these tailor-made charts:




The stat

$ 1.2 billion – That's how much Disney deals with "Avengers: Endgame" in theaters around the world for the first five days. The train is making the previous record on the opening weekend, which was set with the previous $ 641 million film in the series, absolutely complete.



Getty Images

Fans of the Avengers arrive for a costume contest before the first screening of "Avengers: Endgame" at the TCL Chinese Theater in Hollywood, California on April 25, 2019. (Photo by Frederic J. BROWN / AFP) (Image credits should read FREDERIC J. BROWN / AFP / Getty Images)

Entertainment giant's shares

DIS, -0.93%

increased by 1.5%.

The Quote

"Our founders were very educated people. And maybe none other than an Alexander Hamilton, an immigrant who, thank God, arrived before the land was full. Honestly, I do not know why they let the guy in. Obviously someone had sneaked in on the southern border. "- Historian Ron Chernow, who spoke at the White House correspondent's dinner this weekend. Watch the full speech:

The Economy

All eyes will be on the April report, but we will not get it by the end of the week. Further highlights are the Case-Shiller house prices on Tuesday and the car sales one day later. The Federal Open Market Committee (FOMC) is also meeting this week, but no policy changes are expected.

In terms of Monday, consumer spending data rose sharply in March, while the Dallas Fed maker survey later took place.

On Friday, data showed that the US economy grew 3.2% in the first quarter, more than the analysts. Expectations, partly thanks to the stockpiling of goods, although it was not immediately clear how, as the data showed that both domestic production and imports declined in the first three months of the year.

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Mark Zuckerberg has a low-tech solution to his wife's sleep problems.

Shanghai is destined for global hegemony.

Pope Francis puts his money where his mouth is on immigration.

Will AI improve or hack humanity?

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