Felix Zulauf anticipates coming stress in the Chinese banking system which could trigger a 1997 decline in stock markets, particularly the United States stock market which he sees as tremendously overpriced.
He thinks gold has been washed out in both sentiment and price, with any panic providing a buying opportunity. China, who purchased the entire gold production last year, will continue to soak up physical gold supply.
He feels that there will be trouble with Hong Kong interest rates (due to their peg to the U.S. dollar) that will impact their markets, and the Turkish lira (their currency) could get "explosive" to the downside in the months ahead.
