FABER: The only Game in town….

Posted by Marc Faber

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…..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. (Ed Note: New S&P 500 High Today)


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.

There will be a Massive Deflation in Financial Assets

I feel deeply uncomfortable to hold cash in a bank and I think we are in an environment where financial assets are going to come under a lot of pressure at some point , Now will that some point be with Dow Jones at 20 000 , or 15 000 or 30 000 ? who knows ? but all I know is that the financial sector is disproportionately large to the global economy and that there will be a massive deflation in the financial assets 

…… In Fox Business News interview : click here to watch the full interview >>>>>>>(Ed Note: 4:13 clip)

GOLD : we never know exactly which is the high and which is the low that’s why there are more poor people than rich people

Well he (Jim Rogers ) may know more than I do , and it is possible that (Gold) drops further , it is also possible that given the incredible bearish sentiment that exists about the outlook for gold price and given the fact that gold has already declined by almost 40 percent and also given the money printing , that we have around the world that gold is making lows right now , who knows ? my sense is that , we never know exactly which is the high and which is the low that’s why there are more poor people than rich people otherwise everybody will buy at the low and sell at the high the same day.

 Click HERE to watch the full interview (Ed Note: Same 4:13 clip as above)