Marc Faber : “Car sales have been weakening, housing has been slowing down, the debt levels are extremely high, and short-term interest rates are going up, so it’s hurting some sectors of the market which are interest rate dependent. And I think the economy by and large will disappoint in the next three months, and therefore one of the predictions and positions I have is to be long Treasury bonds.
But I think the surprise for many investors is that the stock market will go down. I would say a bear market is overdue and a recession is overdue.
The one thing that we need to consider which is important for, say, precious metals investors, is the following: Let’s say the Fed realizes that the deficits for the U.S. go up and that interest rates increase and that the economy slows down, do you really think that they will increase the Fed funds rate three times in 2017? Never. What they will aim at, then, is to essentially bring interest rates down, especially if by then the dollar is still strong. And so they will probably launch QE4 in 2017. I think that will be a surprise for many people — not for me, but for many people that will be a surprise.
So as a surprise I would say A, a stock market that goes down, B, a recession, and C, a bond market rally and precious metals going…
Source Kingworldnews
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
