Stock market risk

I think the stock market in the US has risen from 666 on the S&P to now over 1600. I don't think there is much upside potential, and has a considerable downside risks. It could be that all the money in the world flows into US stocks and avoids emerging markets as in the case it is right now with the money flowing into the US but I wouldn't bet on it.

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

There wont be much tapering

Central banks around the world will continue to pursue easy monetary policies and there will be very little tapering. But in the unlikely case, where the US economy were strong and showing strong growth, in half an year or year's time, then they will reduce the purchases of assets. But in a scenario where the economy stays weak and continues to disappoint, I do not think that they will taper much. In fact, Mr. Bernanke is most likely to retire and some other Fed members will try to make Mr. Bernanke look like a hawk and they have argued for unlimited QEs forever and that is likely to be the case.

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

This Will End in Disaster

It’s going to end in disaster. But it’s not going to end at the hand of central bankers because I know very well how they think.... They are not going to tighten monetary policies any time soon. They are in the driver’s seat in the sense that they will always find an excuse to print more. They will say, ’OK we have to increase the purchases of assets because now the yield on Treasury bonds has gone up substantially, from less than 1.5% on the 10-Year note a year ago, to 2.68% as of today.’ So they will say, ‘That may damage the economy, so we have to buy more assets.’ And if they do that then the inflation rate may pick-up, and real wages may decline even more. Then they will say, ‘Well, we didn’t do enough because the population isn’t doing well.’ They will always find an excuse to print more. And as you said, it will end in disaster. There is no doubt about that. - Marc Faber via a recent King World News interview, read the full interview here:

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