Marc Faber : The Middle East to Blow up in Flames

Marc Faber : The Middle East to Blow up in Flames

Marc Faber : "let's put it this way , equities have more or less doubled in price from the lows of March 2009 , we are in 2012 so we are 3 years into bull market I do not think that equities are a great bargain I think that the money printing has also flowed into corporate profits , so we have a corporate profit inflation we have a record corporate profit in the US but I don't expect it to go on for ever so I am very cautious about equities right now , in fact I think that we may have seen not just a temporary high a few weeks ago when the S&P went to 1422 , I think this could be the longer term high in other words , we don't exceed this April high this year , but equally I think it is a risk not to own any equities at all for the following reason , I think it is increasingly obvious that the central banks of this world will keep on printing money and that as a result of this money printing the purchasing power of paper money will diminish over time irregularly but it will diminish and so you have to own some assets , I happen to think that home prices in southern US are now relatively low , relatively attractive and I would probably if I were a US citizen and live in the US buy some homes remodel them and sell them out you will get a high return compared to say zero interest rate on deposits .....

Marc Faber : I have to give Credit to Mr. Bernanke

Marc Faber : I find it quite funny this talk about an exit strategy or an exit point because that they don’t have. And I think there will be no exit, but continuation of money printing. But I have to give credit to Mr. Bernanke. If I were in his shoes in the current situation, with the S&P having risen to 1422 the other day, I wouldn’t have embarked on QE3. I would rather wait and announce there won’t be any QE3 for the time being or depending on market conditions or on economic conditions and wait what happens, and if the market sells off 100 points on the S&P or 200 points, say it dips down to 1200 on the S&P, then come up again as the big savior of the whole financial system by implementing QE3 - in The Financial Sense NewsHour - 06 Apr 2012
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