Dr Marc Faber in a short 90 seconds CNBC interview draws some eerie similarities between events preceding the the Black Monday US stock market crash in 1987 and today. (hat tip zero Hedge)
In my view, incompatible forces between record stocks and a slew of negatives--elevated interest rates, $100 oil prices, a prospective shift in the Fed leadership, exploding debt levels, seemingly confused central banks whom are seemingly caught between the desire for more easing but continues to float the 'taper', parallel universes, increasing signs of struggling economies, government manipulation of statistics (China) and pervading symptoms of 'this time is different' manic outlook by the mainstream--all combines to increase the risks of a substantial downshift in global equity markets.
Although I am not inclined to see a 1987 scenario, considering that financial markets have been founded on the equivalent of sand castles predicated on central banking steroids and guarantees, such a black swan scenario shouldn't be ruled out.
No comments:
Post a Comment