If the markets continue with a very strong rally into the summer, as was the case in 1987, I would expect a correction, a significant market decline. In the short term there can be a small correction, but then a rally will probably lead to a more significant top in 2013 which will not be exceeded for a while.
(Note: The 1987 Crash or Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The Dow Jones Industrial Average(DJIA) dropped by 508 points to 1738.74 (22.61%). By the end of October, stock markets in Hong Kong had fallen 45.5%, Australia 41.8%, Spain 31%, the United Kingdom 26.45%, and Canada 22.5%. New Zealand’s market was hit especially hard, falling about 60% from its 1987 peak)
1987 Crash
Yesterday Marc Faber told King World News that a major bottom is forming in gold, but global stock markets are on shaky ground. Faber, who is author of the Gloom Boom and Doom Report, was speaking with KWN as the gold market was in the midst of being smashed on Wednesday……. the entire interview can be read HERE
Invest Overseas, The Fed Party Is Over
For four years the FOMC has been printing money to keep interest rates low in order to stimulate the economy. For just as long investors have been hand- variants on this form of stimulus, the “race to debase” currency has become a national phenomenon.
2013 The Year of Global Recession
A Global Recession Is Coming! Marc Faber appears on CNBC where he talks about a global recession that he see’s coming. Marc Faber is the author of the Gloom Boom and Doom report.
