Shenzhen, China-based broker-dealer, Fox Capital Partners believes the US Federal Reserve could be forced to reverse its December rate hike and introduce another round of quantitative easing if the rocky start to 2016 in the equity markets persists and US economic data continues to deteriorate.

Economic data from housing to retail spending to consumer confidence have been steadily worsening as the 6 year old recovery in world’s biggest economy loses momentum.

“The Federal Reserve has everyone convinced that QE rounds 1,2 and 3 actually worked but in reality, all they succeeded in doing was fueling a huge bubble in asset prices. When the situation in the economy worsens, as it surely will, we believe they will have little choice but to take back the December rate hike and return to the printing presses,” predicted Gordon Li-Chao, chief economist at Fox Capital Partners.

Fox Capital Partners is not alone in its assertions over the bleak outlook for the US economy. Recently, Albert Edwards, a senior strategist with Societe Generale forecast the probability of a new financial crisis occurring in 2016 at a time when the world’s central banks had little in the way of traditional ammunition – interest rates – to combat it.

“The situation is far more precarious than the mainstream media has reported and investors really do need to be positioned wisely because the outcome could be far worse than 2008,” said Li-Chao.

Fox Capital Partners continues to advocate holdings in precious metals like gold and silver and carefully selected mining and emerging market equities.

About Fox Capital Partners
Fox Capital Partners is a successful, independent investment management practice established in Shenzhen City, China and headquartered in Shenzhen. Our highly-qualified professionals advise on a wide array of wealth accrual, preservation and portfolio management solutions aimed at affluent individuals and families in Asia and elsewhere.