Swiss investor Felix Zulauf is a pioneer among global finance.
He joint the industry before Wall Street became ‘Wall Street’.
He anticipated the great equity bull market in the early 1980s, made a killing for his clients during the infamous 1987 market crash, and foresaw the Asian Financial Crisis back in the 1990s.
How brilliant would it be if we could hear his insights and his advice for us all!
Lucky for us, Bloomberg View’s columnist Barry Ritholtz interviewed the legendary investor recently over a podcast.
Taking more than an hour, Ritholtz discussed with Zulauf over a range of topics that include his career, how financial markets have evolved over the decades, central banks and his views on the economic environment in this current cycle and the next. The two also discussed about the critical geopolitical relationship between the US and China, and the rising trend of index investing.
Take the time to listen to it – you won’t regret it.
Here are some key points of the podcast that I penned down:
- It’s important to learn the investment business the hard way: investing your own money alongside your convictions
- Zulauf wanted to learn the theories that make the world works and markets move (studied alongside working in the industry); he didn’t have to unlearn bad academic theories and models that do not work in the real world. Best stockpicker he knew was a dentist by training, who was never biased by learning the theories early on in his career
- It’s important to see the driving theme for the current market cycle (last cycle was real estate, current one is China)
- When one is wrong in the markets, it increases the risk of making wrong decisions
- Different ways a market top could evolve: a long rounding top OR leading theme stocks go into a buying climax (double in last 6 months), could be quite crazy
- Populist trends will continue because of the polarisation among developed societies
- Current global situation is quite similar to the early 20th century, with rising nationalism, rising protectionism, and with new rising powers challenging status quo
- Advice for investors: studying history and financial market history, look at long term trends, seek to understand Zeitgeist and what changes of Zeitgeist means for financial markets, understand business cycles, look to understand the interaction of people and their effects in the economy and markets
More information about Herr Zulauf and his work can be found here.
*image credits to https://insdrcdn.com/*