Marc Faber on CNBC India June 8, 2009 discusses equities markets, commodities and investment entry points.
For people who want to buy equities around the world, this is a high risk entry point.
There is little potential to grow very strongly [in the global economy]. I think there will be disapointment in terms of earnings in the second half of 2009.
I don’t think that it’s a very good time to make an entry into the markets, except for traders.
As a trader, as of today, I would rather sell than buy.
At this point, the global markets have risen so strongly and so quickly, that long-term investors should probably stay away and wait. Marc Faber is not just talking about US markets, but global markets, as well. Because it is likely that the USA, Asia and Europe have not yet decoupled, there is a significant risk that when US markets collapse, equities markets around the global will collapse with them.
I have had positions and many resource stocks have doubled from the lows, some have even tripled. Again, I don’t think it’s an attractive entry point to buy commodities and commodity related stocks. Oil is up almost 100% from the lows and the demand for oil is still rising but not as much as before. I just don’t think it’s a very good time to buy.
Marc Faber may smell a correction in the works. He has mentioned since late April that an S&P correction should occur in the near-term, and once completed, we should see markets continue to rise into late July. Unless a market correction happens in the next few weeks, it is probably not a great time to enter the equities markets in any significant capacity.
Watch Marc Faber on CNBC India June 8, 2009: