In the near-term, I believe that markets can still rally somewhat for the simple reason that in every market you have a few strong stocks and they are breaking out on the upside. And then you have a lot of stocks that are down 40-50% and very oversold, so they can also rebound.
We have a lot of liquidity in the world that has been created essentially by central bankers. We have negative real interest rates practically everywhere. So if people keep their money on deposits, they are losing out in terms of purchasing power. The sentiment among investors, at the beginning of June, was very negative when the S&P bottomed out.
So I think that we may still rally somewhat into August -- mid-August, end of August and then probably will have a tougher second half. In other words, September-October-November could be somewhat tougher months. - in CNBC TV-18
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
