FELIX ZULAUF: Stocks Will Collapse, Gold Will Surge, And The 30-Year Bond Bull Market Is Over

"Felix Zulauf, a Swiss hedge fund manager, is out with another bearish forecast for stocks, bonds and currencies.

Speaking to King World News, Zulauf says the 30-year bull cycle in Treasury bonds has ended, and that gold prices will soon surge again.

I think we first see, over the next couple of years, the transfer of government debt from private balance sheets to central bank balance sheets. I do believe the 30 year bull market in government bonds is over. I mentioned in the media (Barron’s) Roundtable that one should be selling half of what he owns, and should sell the other half in September at the latest.

I think the whole game is over. Bonds are very overvalued. The real return is negative. Normally bonds yield at least as much as nominal GDP growth. Nominal GDP growth at the present time is about 3% or 4% in the US. I’m not suggesting we go right there tomorrow (in terms of yield), but bonds are very overvalued.

... from now on buying the dips [in the price of gold] is the right strategy because I think we have actually entered the next cyclical bull market within the secular bull run that we are still in..."

at http://www.businessinsider.com/felix-zulauf-the-30-year-bull-market-in-government-bonds-is-over-2012-9#ixzz26TTJE3iu