Swiss Fund Manager Warns Unprecedented Fed Intervention Leaving “Markets More Distorted Than Ever”

by | Mar 30, 2015 | Commodities, Experts, Headline News | 29 comments

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    Be prepared for a difficult market, prolonged and distorted by nearly unlimited liquidity, printing and intervention on the part of the Federal Reserve and other central banks.

    Billionaire Swiss fund manager Felix Zulauf sounded off about the instability of the market and the potential for major ups and downs as currencies go volatile and the impact of loose money takes hold. Investors today face a difficult landscape due to the possibilities for major currency devaluations and economic conditions that are manipulated to a level the world has never before seen.

    Zulauf warned:

    “The current cycle is very unusual, because never before have we seen authorities, central banks in particular, intervening on such a large scale and pumping so much money into global financial markets. Hence, global financial markets are more distorted than ever before and accordingly, the risks are very high.”

    The money pumping is enough to distort not only the landscape, but to change the gravity as well.

    The new frontier seems to be holding to value, with negative interest rates offering not a race for return, but for safe harbor. Foreign investments could be shaky, or even crumbling with a stronger U.S. dollar crimping trade, and potential devaluations of the Euro and Yuan each a ticking time bomb.

    As Zero Hedge posted, Zulauf explains that these problems cannot be corrected by pumping more liquidity into the system, even though that is exactly what nearly every major central bank is doing:

    “Global demand has weakened due to structural reasons. This is a situation that cannot be improved by pumping liquidity into the system. Zero or even negative interest rates have distorted the valuation and pricing of virtually all assets.” “Investing becomes very difficult in such an unprecedented environment, as it can’t be compared to previous situations.” “We know that the longer a distortion prevails, the more investors get used to it and it becomes the “new normal” to them. That’s where the problem lies!”

    As it stands, a number of truly global forces are bending events to their will. Asset bubbles will form and shape around the central bank interventions. Zulauf writes:

    “Inflation and bond yields rise and begin to prick asset bubbles.”

    Market investors will respond to these currents, and likely drive prices to unnatural and “unsustainable” highs according to the Swiss billionaire. Meanwhile, pumping liquidity to stay afloat in Europe is also creating a false sense of normalcy that is due, at some point, for a reckoning.

    And then there’s China.

    The yuan, while gaining momentum a new world reserve currency, is also weakening significantly and could set off a tidal wave of “deflationary pressure” that could knock down the global economy.

    It is clear that individuals are caught up in an overwhelming and unforgiving system. Without a sophisticated understanding of changing currencies, one could easily be caught off guard and take a serious hit in the market.


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      1. Nearly all government numbers are bogus or modified in order to confuse. They suck!

        • NEARLY all?… me ONE gub-mint statistic that isn’t manipulated/distorted?….and if you CAN, i bet it aint reported by mainstream media.

          • US Naval Observatory Provides info on time and a bunch of Planetary info.


          Way to fucking go boomers!!! We now have a full-scale red army invasion of states featuring predominantly those who need reeducation. When the Bolsheviks did this they nailed the intestines of live rich people to trees and let them run, pulling their own intestines out. Wont that be so cool!!?? Long live the Obamamessiah!!! Thank you for saddling us with this fucking mess, you cunting old people. Gotta get that socialist security check.

          I hope all you molan labe meatheads have balls to match your fat mouths, cause very soon we shall see who’s a patriot.

          Seriously, we don’t have much time.

          When the balloon goes up, God mit uns. And may we make the fucking pigs pay for every fucking inch of ground.

          • Acid,you might think before you let your mouth goes into gear. Don’t make it something it isn’t. Go back to your corner and let the adults deal with things.

          • All-mouth chickenshit.

          • It is nice to see another human being who fully understands and comprehends what is just beyond the horizon. Good luck to you my friend.
            And we are friends. Spirit.

        • Knock on my door.

          The sanitary dudes tell me I probably have to get a motel room tonight. The water main has been taken out by an accident and I’m not going to have any water in my house for a while.

          I just laughed.

          • Acid:
            This is all old stuff, I heard or read about most of this weeks ago.
            Plus do you believe every thing you read???
            All the people you had brought up about not leaving any good comments, YOU are wrong.
            They speak what is on their minds just like you do.
            With your foul mouth and your degrading of people, YOU have more worthless comments than any one of this site.
            By the way I’m boomer that has paid his does.
            HAVE YOU????? I DON’T THINK SO!!!!!!
            I hope this pisses you off with all these letters!;-} S.T.S.F.P N.R. N.S. N.Reb

          • Thanks for your posts Acid. You’ve helped me numerous times.

      2. The market is distorting upwards of 200 points today towards 18,000 again.

        • Free:
          Newton 3rd law of motion, what goes up must come down!;-{
          So the higher it gets the farther it and harder it will fall. It’s all paper there is really no money left in the market, it is just I.O.U.’s
          S.T.S.F.P. N.Reb

      3. Another case of kicking the can down the road!

        • I think they’ve managed to kick it off a cliff this time.

        • Yes Sir, Problem being that the can is getting rusty and the boot kicking it is getting worn out.


      4. Let me tell you a little story, it happened a long time ago. In the new magic land where the Indians and the Buffalo existed hand and hand. You see the Indians they needed some food and some skins for roof and they only took what they needed baby and the millions of buffalo were the proof. But then came the White Dog with his thick and empty head, he couldn’t see past his Billfold and wanted all the buffalo DEAD!!! And everything was sad so sad!!!!

      5. Its not going to end well…..that can has been overly abused.

      6. Taking away all the savers income and giving it to the Wealthy. No Shame!

      7. See SWIFT-The society of worldwide interbank financial telecommunications. Russia and china, no longer will need to rely on our SWIFT system, all currencies in urasia, china, russian, Iran and the middle east will be using this, and russia is working on pulling in the EU. Then they dumped 100 Billion into the new Global bank with the ruble and Yuan backed my gold. The German president Merkel, the Daughter of Hitler, is in on it also.

        We are completely screwed and will calapsing. Oh, i may need to go talk to one of those texting idoets at Starbucks, they may now someting i dont.

      8. LMAO from no-Hedge along this line

        “The financial world has bifurcated sharply into just two camps: savers, and speculators. All the forces of the world’s central banks have been devoted to shafting the former and encouraging the latter.”

        Who in their right mind wants to invest in a rigged & manipulated market that benefits a chosen few at everyone else’s expense.

        Screw the markets. My mattress is safer than any bank or stock at this time.

        Time for the government to bail out the taxpayer.

        NOT the corrupt tribal bankers.

        • You mean time for the taxpayer to flip the bird to government

          • YEP

            Why not since the rule of law means nothing & the bankers can do no wrong.

            Hell yes

            whats good for the goose is good for the gander

      9. It don’t take a genius to know theres a collapse coming. What goes up must eventually come down. No person, no business and no government can borrow themselves into prosperity. Too many parasite takers and to few producing makers is not sustainable. When the end comes is the question. I never thought the kickcanistan economics would have lasted as long as it has?

      10. Robbing peter to pay Paul.

      11. @Kulafarmer
        About a week ago I asked for some input on this site on which 12 gauge would be a good weapon to stock up on. Only a few responded, and you told me to “go with the Maverick 88”. Right on! ( Great value at $238 ea.)

        I’m working on obtaining a whole mess of them, thanks!

        Watch out fur them hogs!

        • Bennelli Nova pump about 300 bucks. It’s my all around gun. 2 3/4 to 3 1/2 never fails. It’s my old reliable. Has been through hell as my turkey gun. It’s the best shotgun I have ever had. Throws a hell of a pattern too!


      12. Robots. The solution is robots.

      13. US needs a new huge war! US needs to destroy Europe, otherwise it will run out of options.

        Let’s hope the World will disconnect from US and its accomplices.

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