Gold News

Expert predicts worsening US economy

A leading investment expert has forecast that a recession will take place in the US this year.

Speaking to Bloomberg Television, Pequot Capital Management chief investment strategist Byron Wien also said that stocks are likely to fall by about ten per cent in 2008, with the Standard & Poor's 500 Index undergoing a rally during the second half of the year.

He stated that he also believes the Federal Reserve will slash the benchmark rate of interest to under three per cent - compared with the current level of 4.25 per cent - while gold prices will reach $1,000 an ounce.

"It's going to be a tough year to make money," Mr Wien commented, adding: "People underestimate the significance of what's going on in the housing business and the credit market."

Meanwhile, minutes from the December 11th meeting of the Federal Reserve have suggested that some members of the central bank's Federal Open Market Committee believed that any further credit tightening could need "a substantial further easing of policy".


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals