Tags: Jeffrey Hirsch | Economy | Growth | Fed

Jeffrey Hirsch to Moneynews: Economy Poised for 'Deceleration'

By    |   Tuesday, 11 June 2013 02:27 PM

The U.S. economy is poised for a period of deceleration, according to Jeffrey Hirsch, the editor-in-chief of Stock & Commodity Trader’s Almanacs.

"I don't think there's a lot of acceleration of growth," Hirsch told Newsmax TV in an exclusive interview.

"I'm suspecting that things will sort of calm down and we'll be looking for the next sort of catalyst to really ramp up the economy other than Fed Kool-Aid-ing quantitative easing."

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The Federal Reserve purchases $45 billion of Treasurys and $40 billion worth of mortgage securities every month to put downward pressure on borrowing costs, according to Bloomberg News.

Editor's Note: Save, shop and invest like an insider! Our experts lead the way each month in The Franklin Prosperity Report. Click here to learn more.

The policy-setting Federal Open Market Committee said May 1 that it will continue buying bonds “until the outlook for the labor market has improved substantially.”

The chief market strategist of the Magnet A-E Fund doesn’t see a continuation of stock indexes reaching record highs on an almost daily basis.

"We're poised for a correction, some sort of a fall," Hirsch said. "Perhaps a bit of sideways action through the seasonally weak period, May through October. We may have seen at least an interim high point here in May."

Hirsch was asked about the impact on markets of the prospect of Fed tapering of its quantitative easing program.

"It will be a negative effect," he said. "It will reel the market in. I don't expect any major tapering or telegraphing of it until at least Q4 of 2013, and perhaps not until [Fed Chairman Ben S.] Bernanke leaves office in January 2014," he said.

"There's an outside chance that Mr. Bernanke will take another term. He's been there a long time. [I am] pretty sure he has a more lucrative future in the private sector. I suspect Jan. 31 will be his last day in office and leading up to that and around that time, when a new chairman comes in and creates the Fed in their image, that will be when things will change and when the market will start to falter."

Also discussed was the outlook for precious metals.

"Gold and silver have been in a sort of negative seasonal pattern," he said. "We're sort of looking at that negative season ending. We're looking to sort of trim our shorts in gold to get into the longs over the next month or so."

Editor's Note: Save, shop and invest like an insider! Our experts lead the way each month in The Franklin Prosperity Report. Click here to learn more.

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Economy
The U.S. economy is poised for a period of deceleration, according to Jeffrey Hirsch, the editor-in-chief of Stock & Commodity Trader’s Almanacs.
Jeffrey Hirsch,Economy,Growth,Fed
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2013-27-11
Tuesday, 11 June 2013 02:27 PM
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