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An artificially boosted economic recovery will come by spring time, but the equities markets are still in danger of a sharp pullback, said Gerald Celente, publisher of the Trends Journal.
“It’s going to be a dreadful winter for the economy. The gamblers are going into the emerging markets. I believe that we’re going to see a sharp bear market in the United States. It’s going to happen,” Celente said.
Valuations are too high for stocks in the U.S. but they are more attractive for emerging markets, Celente said.
Celente noted that America’s supremacy in the global arena is coming to an end, and the next century will be dominated by China.
“America lost the trade war,” he said. “The 20th century was the American century, the 21st century is going to be the Chinese century. The business of China is business, the business of America is war,” he said.
This in turn, will cause the dollar to depreciate in value, Celente noted.
A declining stock market and lower dollar will mean higher metals prices.
“Long-term, we’re looking at gold this year to break $2,100, and we’re looking for silver to break well over $50 an ounce,” he said.
By David Lin
For Kitco News
