Marc Faber : the markets has experienced everywhere huge technical damage

Marc Faber CNBC Video Interview 05 Aug 2011

Marc Faber : the markets has experienced everywhere huge technical damage and near term as of today all markets are extremely extremely oversold , so rebound is going to happen today or tomorrow I mean on Monday but the damage technically is so great that the rebound no matter if QE3 happens right here it's unlikely to left the market above May 2nd High on the S&P at 1370 my near term target for October November will be something like 1150 on the S&P , then we will have to see if QE3 or QE4 will come and whether the market will stabilize , generally I will be using the rebound as a selling opportunity

Marc Faber : I can already smell QE3

Marc Faber : well as I said I think the market is extremely oversold as of today and I think we can have a snap back rally say 40 or 50 points on the S&P but no new highs and I always said starting February that a correction is under way and that we will go down to say 1100 , 1150 something like this but now may be it is not going to happen that we go down to 1100 because I can already smell QE3 and the next few weeks or next week will be important to see whether Mister Bernanke is a really a true money printer or just an amateur money printer , if he is a true money printer he will start printing soon and then the markets will rally but no new highs as I said
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Marc Faber : the markets are extremely oversold

Marc Faber : well I do not think that so far it's been a major sell-off , I think we doubled in markets from March 2009 until the high in May of this year and now with the S&P we are down 10 percent the whole world is panicking ..I am telling you the world is mad the investors they do not understand that markets are volatile and that they have to be prepared to see stocks dropping 30 percent annually and rally 20 percent and then drops 30 percent that should be the pattern and whoever can't live with that he shouldn't be buying anything at all
" there is a case to be ultra-bearish about everything but then you have to think , if I am really very negative about everything what do I invest in ? government bonds in the US the ten years yields in 2.4 percent in a weak currency ? or do I invest in cash with negative real interest rates or do I invest in equities real estates precious metals commodities collectibles ? well I have to say equities are going to go lower where As of today, the markets are extremely oversold and they can take in a rally , but the technical damage that has occurred between November of last year and and just recently is enormous and I do not think we will see new highs for the year I think we 've seen the highs for the year between February and May of this year "

Marc Faber latest Bloomberg Interview - 05 Aug 2011

Marc Faber : ...I am telling you the world is mad the investors they do not understand that markets are volatile and that they have to be prepared to see stocks dropping 30 percent annually and rally 20 percent and then dropp 30 percent that should be the pattern and whoever can't live with that he shouldn't be buying anything at all