Marc Faber on Howe Street May 9, 2009. Dr. Faber, editor and publisher of the Gloom Boom & Doom Report, discusses the recent runup in the financial markets, potential for a correction and another runup into July, US Treasury bonds, green shoots, commodites and short and long term forecast ideas. (Two Part Marc Faber Interview follows excerpts and comments below)
I think many shares have bottomed out. We had a very strong rally near-term, I mean on a 10 day basis the market is over-bought. I think what we could have is a correction here and then another push on the upside into July.
Dr. Faber and other forecaster, like Harry Dent, seem to agree that the market is due for a correction. Harry Dent’s forecast is calling for a Dow Jones range of 7400 – 7600 for the most likely scenario and 6800 – 7400 for a significant correction. It is also noteworthy to mention that Dr. Faber, in the May 2009 Gloom Boom & Doom Report, recommends commodity stocks like Rio Tinot, BHP and Ivanhoe, but only in the event of a significant correction.
I’m not sure that markets are telling you very much about the economy and about how the global economy will perform. But, it may tell you something about the money printing of Mr. Bernake and the deficits of Mr. Geithner.
When you have escalating fiscal deficits and easy money eventually you get inflation.
As Dr. Faber has said on several occasions prior to this interview: “Don’t underestimate the power of quantitative easing!”
Markets peak out on good news and they bottom out on bad news. If someone doesn’t understand that then he shouldn’t invest.
We sure have had a good deal of ‘good (not so bad) news’ lately, so perhaps, for the very short-term, Dr. Faber is right and we may see a temporary top and correction for several weeks.
It Took 22 Years to Get to This Point
The head of the Canadian province of Ontario, Doug Ford, has warned that it will retaliate against...
This article was originally published by Willow Tohi at Natural News. The federal deficit has...
This article was originally published by Michael Snyder at The Economic Collapse Blog. The number...
Commenting Policy:
Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.
This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.
Comments