“Everybody who was hiding in FANG names, now wants to be in Caterpillar, Exxon Mobil”

New Delhi, Nov 29 (SocialNews.XYZ) Larry McDonald, founder of the investment research service The Bear Traps Report says tech stocks are in deep trouble, because everybody who was hiding in those FANG names, now wants to be in Caterpillar, Exxon Mobil, and all these industrials.

In an interview with The Market/NZZ published on Worldoutofwhack, McDonald says the dollar should collapse, and foresees a global synchronized economic boom once the pandemic is over.

"The multiplier effect of the stronger Yuan has an incredible impact on the global economy. We now have the vaccines, and a Biden administration that is globally friendly. As a result, we're going to have a massive global synchronized growth trade", he said.

He said tech stocks are in deep trouble while the industrials are going up. "Just look at Microsoft's stock price: It's basically flat since June, whereas Caterpillar is up almost 40 per cent. Tech stocks are in deep trouble, because everybody who was hiding in those FANG names, now wants to be in Caterpillar, Exxon Mobil, and all these industrials", he said.

McDonald is betting on a global synchronized boom in the economy. He predicts rising inflation and a strong bull market in the commodity sector, particularly in energy stocks.

"The last ten years were all about austerity and Tea Parties. Now, we're going to have no trade war, no Brexit, no Covid and a far more global fiscal receptivity framework," says Larry McDonald. "This is going to be a massive commodity boom. We're at the beginning of a commodity super cycle", adds the internationally renowned investment strategist, as per Worldoutofwhack.

McDonald said signs of a revival of the global economy are already evident in the shipping industry, where freight rates for containers are skyrocketing. A similar trend is going to be emerging in the energy sector, where serious capacity shortages could boost fossil fuel prices as early as next summer.

Source: IANS