In the following video interview by CNBC my indirect investing mentor Dr. Marc Faber, the Swiss fund manager and publisher of the 'Gloom, Boom and Doom Report thinks that browbeaten markets may stage an oversold bounce. (ht: lewrockwell.com)
He also thinks that the US equity markets will fall soon:
I think the high was 1,687 on May 22nd and will go down 20-30%
He also warns of a likely contagion on EM markets premised on what a sees as a slowdown or even a "no growth" in China's economy.
Dr. Faber thinks that China has a "massive" credit bubble.
Amusingly he even lectures media talking heads
I would listen to the markets. I mean, look, some emerging markets have tumbled by 20-30% since their highs earlier this year, some have dropped 20% in 3 weeks...I would listen to that and not sit there and say everything is fine.
Same goes here, one-two day rebound and "everything is fine"
Dr. Faber remains bullish on gold, even if he thinks that gold prices may go lower for 2 reasons: Commercials (professionals) have a very short exposure on gold, and that the cost of production has gone up dramatically.
Dr. Faber remains bullish on gold, even if he thinks that gold prices may go lower for 2 reasons: Commercials (professionals) have a very short exposure on gold, and that the cost of production has gone up dramatically.
Dr. Faber's has a good advise which I share:
I think as an investor you need discipline and patience, and I think the best course of action is to actually not buy anything, but rather to reduce positions on a rebound
The Great Nine XLU, IXG, KXI, XOP, XTN, IYC, MTK, XLI, IHF, seen in this Finviz Screener and shown in this Finviz screener illustrate that the Interest Rate Sensitive Utilities, XLU, are the market leaders in the transition out of Liberalism and into Authoritarianism, as is seen in their combined ongoing Yahoo Finance Chart. In as much as Utilities, XLU, rose to strong resistance this week, this week’s rally is all the rallying that is likely to occur, and represents a good opportunity to sell out of stocks before they plummet lowe
ReplyDeletethanks for the insights.
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