According to CoinVoice, as reported by Jinshi, history may soon repeat itself. The well-known 'prophet' and head of the Swiss consulting firm Zulauf, Felix Zulauf, articulated his typically stern Swiss perspective on the global market, which always serves as a useful counterpoint to the inevitable optimism of most Wall Street prophets.
Currently, Zulauf believes the market will continue to rise. He acknowledges the widely publicized negative technical factors in the stock market—such as extremely optimistic sentiment suggesting that investors are fully invested, with almost no new buyers. Meanwhile, market winners continue to concentrate on large tech companies, and the worsening market breadth is also a warning signal. However, he believes positive liquidity trends should continue to push prices higher.
Felix Zulauf also stated that exchange rate fluctuations will negatively impact the stock market, and consequently the U.S. economy. The traditional view is that the stock market is driven by the economy, but he believes this relationship has reversed. The rise of the stock market and cryptocurrencies has strengthened consumers' balance sheets, enabling them to reduce savings and increase spending. Meanwhile, the U.S. labor market is tight, driving up wages—while strong asset prices allow more Americans to quit their jobs and enjoy early retirement. However, a reversal in the stock market will have negative consequences.
I've spent a lot of time in Florida, and I know many wealthy individuals with strong balance sheets,” Zulauf said. “I can tell you that if the market drops 20%, they will cut back on spending and reduce expenses. I've seen this happen in the past, and it will happen again in the future.” He added that, meanwhile, the relatively poorer population with fewer assets and tighter balance sheets accounts for a much smaller proportion of spending. [Original link]