Marc Faber : in general I would say the news follows events in other words the downgrades were already discounted by the bonds markets in Europe and when the news came out it had no impact actually the market was kind of relieved , it's like when a war break out if prior to the war the market has already discounted it went down strongly then on the war news the market then shoots up , on the other hand if some event happened completely unexpectedly the market can sell off , but in general I think now in Europe the bad news has been now largely discounted and the market participants they think that the problems cannot be resolved but they can be postponed , which involves essentially money printing either directly or through backdoor measures ....- in Fox Business News
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Saturday, January 21, 2012
Strong Asset Markets
Marc Faber : "You could have strong asset markets. Commodities or metal prices could go up. In my view I think that equity markets have to a large extent already discounted some very bad news," - in CNBC
Marc Faber Negative about the outlook for the world
Marc Faber : "I`m negative about the outlook for the world because we are trying to solve the crisis created by excessive debt growth and excessive leverage with even more credit and leverage, which will just postpone the problem,- in CNBC
Interest Rates hike will impact the Cost of Financing
Marc Faber : "The day interest rates go up for whatever reason, the cost of financing will also become burdensome," - in CNBC
The Expansion of the Debt will continue
Marc Faber : "If we look at US government debt, it reached USD 1 trillion in 1980 and in the year 2000 we were at USD 5 trillion. So between 2000 and 2011 we've grown three times and the expansion of the debt will continue," - in CNBC
The Fed will come in with QE3 and QE4 guaranteed
Marc Faber : "My view is simply: relax. I don't think that equities will collapse. I think we have major support going back to August 2010 when the S&P was at 1010,"
"We have a lot of support around 1100, and if the S&P drops 200 points, I guarantee you the Fed will come in with QE3 and QE4 and so forth,"
"We have a lot of support around 1100, and if the S&P drops 200 points, I guarantee you the Fed will come in with QE3 and QE4 and so forth,"
Marc Faber Whats Next For The Markets ?
Marc Faber interviewed by This Week in Money on What's next for markets? "my view is they can postpone the problems and the market may rally for a while , I doubt it will make any new highs , and I doubt that it will really benefit the typical household and the lower income group recipient but it will do some good for stock prices and they'll overshoot again and then there will be another decline " "we are in extremely volatile times " says Marc Faber
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