Subscribe via Email:

Monday, January 27, 2014

What could crash stocks in 2014

Its interesting that despite all the money printing bond yields didn't go down, they bottomed out on July 25th 2012 at 1.43 percent of the 10 year. We are now 2.85 percent. We are up substantially. This hasn't had an impact on stocks yet. In fact it pushed money into the stock market out of the bond market. But if they 10 years goes to three and half to four percent and the 30 year goes to close to five percent, the mortgage rates go 6 percent, that will hit the economy very hard.

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

Similarities in US stock market with Indonesia, Thailand

The market hasn't had a correction of more than 11% since October 2011. It is possible that a well-run bond fund will do better this year than the stock market. Enthusiasm about the U.S. market reminds me of the talk I heard nine months ago in Indonesia and Thailand. Subsequently, those markets fell 35%. While it is too late to buy the U.S., it is too early to buy the emerging markets. They aren't incredibly cheap, except for Vietnam and Iraq, and capital could still flow out.

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

Faber on Singapore, Cathay Pacific Air

I am not keen to own Singapore Airlines or Cathay Pacific Airways because they have a lot of competition from budget airlines. But I like some airline-servicing companies based in Singapore, including SATS, in the catering business, and SIA Engineering, which overhauls aircraft. They have subsidiaries in many Asian countries. The stocks yield around 4%. They aren't supercheap, and the Asian markets generally aren't cheap enough for me. But longer term, if you want to park money in Asia, both companies will do well.

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 BLOG

Popular Posts