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Stagflation to last next 6 months, markets in danger of sell-off - Tavi Costa

Kitco News

(Kitco News) - Several structural problems in the U.S. could cause a slowdown in economic growth soon, with stagflation hitting and lasting for the next six months, said Tavi Costa, portfolio manager of Crescat Capital.

"I am in the of sort of a more of a stagflationary environment in the next six months or so. It's difficult to see stagflation over a long period of time…but it's possible to have periods of that and I think we're getting into one," Costa told David Lin, anchor for Kitco News.

On the stock markets, Costa said that valuations for the broad equity markets in the U.S. are overstretched, and that the correction that Chinese and emerging markets equities saw could be repeated for domestic markets.

"I think the markets are going to lead the way. We're seeing, on an annual basis, the CSI 300 of China index just turn negative. Right now, it's 0.1% negative. Emerging markets are turning, and I think the next are developed markets in general," he said.

On Costa's views on miners and cryptocurrencies, watch the video above. Follow David Lin on Twitter: @davidlin_TV.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.