I think we will test the July lows of last year, the S&P at 1,010

Marc Faber : “I think they did the right thing that they didn’t allow QE3. They can watch the reaction of assets, whether they will go lower. I think the market is more likely to move still lower. We are very oversold. We can have a rebound like we did today, maybe we’ll have a rebound next week or so, but in general I think we will test the July lows of last year, the S&P at 1,010. After that, probably we’ll get probably a QE3 announcement.”  - in Bloomberg



Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber - FOX Business News 08/12/11

Marc Faber : well basically we have a lot of volatility as you know the last 12 months the S&P rose from 1010 on July 1st of 2010 to the peak of May 2nd of this year 1370 and then we dropped four days ago to 1101 and now we are at 1178 so we have a lot of volatility as in the market may rebound somewhat more because we are very oversold and some technical indicators have turned positive including also insider buying , but in general I think it will be extremely difficult for stocks to make a new high and after this rebound I think we'll drift lower it is not to say that we will collapse because if the S&P dropped to around a thousand or so the FED will certainly pump again money into the system the concept of valuation is very difficult to make when you have zero interest rates , I can make a case that actually the price of Gold is still undervalued compared to say to mi 1990s when it was traded at 400 dollars , so it is very difficult to say what is valued in this environment is a Picasso a good value or is it over valued ? I don't know but stocks measured by prize earning ratios and considering that probably the economy will be weakening and that corporate profit may disappoint may not be quite as cheap as all the strategists claim I believe all the central banks in the whole world will print money and that eventually we will have symptoms of inflation they may not necessarily all be consumer based prices they can be manifesting themselves with insurance premiums going up with transportation going up energy price going up food prices going up educational costs going up these are inflation measures also and the weakening of the US Dollar that happened , now near term the US Dollar can rebound somewhat , possible but in the long run it is simply a doomed currency that's where the doom comes in




Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.