the stocks will continue to rise to 7% per year but Inflation will eat up the gains

Marc Faber speech at the CLSA Asia Pacific Markets investor conference in Hong Kong

Speaking at the CLSA Asia Pacific Markets investor conference in Hong Kong this week, economic forecaster and Mr. Doom himself, Marc Faber, told investors and attendees his views about the global financial situation and especially that of the United States of America :
“The government ordered the loosening of lending standards. The Federal Reserve kept interest rates low. The government forced lending institutions to give loans to people who as I say, couldn’t afford them. Speculators spotted new investment vehicles, jumped on board and rating agencies underestimated risks. So many to be blamed on so many different levels, but the fact remains that these people were responding to a market solution created by government policies that ran contrary to common sense.”During his speech, Faber told attendees that stocks will continue to rise to around 7 per cent per year, however, all those gains will be gnarled by inflation, which is the increase in the United States money supply.