Stock market is weak internally

The only game in town in the last 12 to 18 months has been the US. So you have most markets in the world going down and the US going up. It is very likely that the US market has already peaked out at 1687 on May 22nd on the S&P and if the market makes a new high it would be only with a few stocks making new highs. The majority of stocks will not make new highs.

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

Indian Rupees vulnerable

In Asia there are very diverging performances. The markets like the Philippines, Indonesia and Thailand are up 3-4 times from the 2009 lows. These markets are very extended. The Chinese market, apart from Vietnam and until last October Japan, had been in a declining mode. In some cases very depressed like Japan in October of last year, it had been in a down trend since 1989. So these markets are probably reaching a buying range. In case of India I am not so sure there is a great hurry to buy anything because the market may not go down equally, but the currency would still seem to be vulnerable.

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

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