US market is on the cusp of a big rally, says Paul Schulte

“The fixe- income credit people are tremendously worried, much more so than the equity people because they see the credit market and the fixed income market sort of falling apart. We are very close to sort of going over the waterfall in terms of liquidity — certainly in the UK, possibly in US treasuries, Yellen also warned the Fed about the liquidity problem in the treasury market. So the Fed can say inflation is high but we need to pause, we need to look at things. England is America’s closest partner and the British guilt market is on the verge of collapsing. So the Fed is going to have to pull back here and I think there is going to be a very big rally,” Schulte said.