Renowned 'prophet': The rise of cryptocurrency has strengthened consumers' balance sheets

Odaily Planet Daily News According to Felix Zulauf, the head of the well-known 'prophet' and the Swiss Zulauf Consulting Company, history may be about to repeat itself. He explained his typical harsh Swiss perspective on the global market, which is always a beneficial supplement to the optimistic speculations of most Wall Street prophets. Currently, Zulauf believes that the market will continue to pump, and he acknowledges the widely publicized technical negative factors in the stock market, such as extremely optimistic sentiment indicating that investors are fully invested, and there are almost no new buyers. At the same time, market winners continue to concentrate on large technology companies, and the deterioration of market breadth is also a warning signal. But he believes that the positive liquidity trend should continue to push up prices. Felix Zulauf also said that exchange rate fluctuations will have a negative impact on the stock market, and thus on the US economy. The traditional view is that the stock market is driven by the economy, but he believes that this relationship has been reversed. The rise of the stock market and cryptocurrencies has strengthened consumers' balance sheets, allowing them to reduce savings and increase spending. At the same time, the US labor market is in short supply, pushing up wages, and strong asset prices enable more Americans to quit their jobs and enjoy early retirement. But a reversal in the stock market will have a negative impact. 'I have spent a lot of time in Florida and I know many wealthy people with strong balance sheets,' Zulauf said. 'I can tell you that if the market falls 20%, they will reduce their spending and cut expenses. I have seen this in the past and it will happen in the future.' He added that, at the same time, the proportion of spending by the relatively poor population with less assets and tight balance sheets is much smaller.