The stock market is hitting record highs every week. Does that mean we are back in bubble territory?
Unquestionably yes says Marc Faber. But not just in equities.
Faber also thinks there is a gigantic speculative bubble in bonds, farmland, bitcoins and virtually eery asset class.
He does not see any value in stocks at this point.
Marc Faber Limited managing director, and The Gloom, Boom & Doom Report publisher, discusses the market’s record run and his plans to short stocks.
Ed Note: That said he says The Fed can Buy the whole Stock Market
“Even if the market drops by 20 percent it is not cheap. The Fed could go into the market and buy the whole S&P500. They would have to borrow money or issue money but basically they can do it. It has happened before. In Hong Kong in 1997, the government came in and bought the stock market but at that time it was cheap.”
“We have to be careful of these kind of exponentially rising markets,” chides Marc Faber, adding that he “sees no value in stocks.” Fearful of shorting, however, because “the bubble in all asset prices” can keep going due to the printing of money by world central banks, Faber explains to a blind Steve Liesman the difference between over-valuation and bubbles , warning that “future return expectations from stocks are now very low.” – in Zerohedge
Faber said the markets, which have reached record highs, could still rise before the bubble bursts, if stimulus programs such as the Federal Reserve’s massive monthly bond purchases and super-low interest rates continue. “Now can the market go up another 20 percent before it tumbles?” Faber said on “Squawk Box”. “Yeah, it can go up even more, if you print money.”
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. He has a daily blog HERE
Ed Note: This image is one from Faber’s GloomBoomDoom website. Here is an explanation he has for this image:
Illustrations for this web site are taken from the series of paintings created by Kaspar Meglinger between 1626 and 1635 known as “The Dance of Death”. The paintings are under the roof of Lucerne’s Spreuer Bridge (completed in 1408) and bring forcibly to mind the transitory nature of life on earth. All “The Dance of Death” illustrations can be clicked for a larger photo.
