Felix Zulauf: “Today Feels Like Late 1999; I Expect FANG Stocks To Fall 30% Or 40%”

In his last interview as part of the Barron’s Roundtable, from which he is retiring at the end of the year after three decades of participation, Felix Zulauf, owner of Zug-based Zulauf Asset Management had some parting words of caution.
First, in his discussion of stocks, Zulauf said “markets exhibit the signs we usually see going into a peak. My trend and momentum indicators are still bullish, but excesses are building up as stocks and sectors move too far above their moving averages. Investor-sentiment readings are getting excessive. July or August could bring an important peak in stocks.”
Comparing to previous episodes of market exuberance, Zulauf said that “today seems like late 1999. We haven’t seen the peak yet. Much depends, as noted, on whether China continues its current policies. Either way, there is a window of vulnerability in the markets. I’m not talking about a 5% setback. It could be 20% from August to November.”
As a reminder, this is what late 1999 looked like, and how it is oddly similar to the S&P tech sector currently.

This post was published at Zero Hedge on Jun 13, 2017.