Market Watch: Shocks Could Damage All Major Economies This Year, Warns Swiss Hedge-Fund Manager

Article by Shawn Langlois in Wall Street Journal Market Watch

In the fall of 2018, Felix Zulauf, head of Swiss hedge fund Zulauf Asset Managment, said investors were facing the start of a “structural bear market.” In other words, not much upside and a downside that’s limited by central banks.

“When the market sells off 20%, 25% or so, they will come in to support it, and the market rallies again,” he said at the time. “Then it fades again and it goes deeper than the last time. This is a very serious, very difficult market to have.”

Shortly after that call, the stock market unraveled, only to start 2019 with a fresh assault on record highs. Zulauf’s take has been pretty much on point, and now, operating under the assumption that the current rally is, indeed, capped, he’s following up with a mostly grim assessment of what’s next.

To read this article in Wall Street Journal Market Watch in its entirety, click here.