FX Concepts' John Taylor Is The New Dr. Doom: "2011 Will Be Worse Than 2008"

"The cycles and very simple fundamentals are enough to predict that 2011 will be worse than 2008. The medium-term cycles tell us that there is a very high probability of a serious bout of risk aversion beginning in the next five trading days and continuing into the week of May 3. This is likely to be most apparent in Europe, but it should also impact the equity and commodity markets around the world. The stream of strong economic and corporate news, plus continued benign inflation outside of Asia should assure us of a further risk rally, starting in May and running through July and possibly into early August. This decline after the August peak should be far more serious and we believe it will be the start of a major market rout continuing into the middle of 2011, at a minimum. The deflationary recession that will accompany this market collapse, at least in the developed world, will put extreme pressure on the Eurozone and the EMU structure. The second half of this decade will witness a very different world." John Taylor of FX Concepts, biggest currency hedge fund in the world


source:http://www.thetreeofliberty.com/vb/showthread.php?t=100193


On the Euro:

"There is nothing really good happening with the euro at all. The economy is weak and you have the southern European countries falling apart."

On the Euro dropping to $1.20 by the end of the year:

"I would say quicker than that, probably by August. It's going to be quick because things are really falling apart and there will be, there's got to be, a solution of some sort between now and August. Let's face it, we were $1.50 at the beginning of this year, or in December, and now we're at $1.33."

On his trading recommendation for Asia down the road:

"Further horizon is to long Asia and short the Euro. [Erlichman: Can you give us more color on that really quickly?] It is clear that Asia has come out of this recession in 2008-9 screamingly fast, and very strong, and Europe isn't coming out of it at all and the United States is in the middle. So sell Europe, buy Asia."