The optimism shown in the markets due to bailout and monetization

Marc Faber : “Basically the optimism arises from some sort of a bailout and monetization. But if you look at the market, OK it’s up, but gold is also up and oil is up.And I do not think it really helps it just postpones the problems like in the US, we monetized time and again and it’s just postponing the problem. In the end, crisis will eventually happen. The problem of the Western world is that there is too much debt and too many unfunded liabilities.” - in Fox Business News 28 Nov 2011




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

Europe will monetize the debt just like in the US

Marc Faber : “The big picture endgame in Europe is that they will also in one or the other form monetize like in the US and that will postpone the problems , but it will not solve them.” - in Fox Business news 28 Nov 2011



 
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 : do not expect too much from the current market rally

Marc Faber : “The rally came from a very oversold level. We have a very strong support on the S&P between 1100-1150. And usually the December month is a strong month as well as January so we have seasonal strength and oversold conditions and we can rally, but I don’t think you should expect too much. I think we’ll get into overhead resistance when the S&P rallies another 5% or so between 1250-1300.”

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

Bonds are not attractive

Marc Faber : “A year ago I said that if the yield on the 10-year Treasury bond dropped to around 3% I would be tempted to short it again. The 10-year now yields 3.2%. You could short the TLT, the iShares Barclays 20+ Year Treasury Bond, an ETF of long-term bonds. It has rallied from 87.30 to 98. If we are in a deflationary environment in the U.S., the Fed will print money again. Therefore, bonds aren’t attractive.”



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