Q: Would you say the rally is probably short-lived and saw the best part of it play out by last week itself?
Marc Faber : This is too early to tell. Basically, we made a low in early June
and at 1261 on the S&P and then we rallied and we came down again,
but we didn’t test a new low. We may rebounce to around 1400 on the
S&P. Don’t forget July is a month of seasonal strength and that we
are coming into the election, there maybe some more money printing and
fiddling with statistic sense of ours. So the market may actually rally a
bit more. But it doesn’t change the global picture, which is
essentially for a global economic slowdown, for an increasing number of
companies that are reporting disappointing sales for forecast, for
earnings.
When there is a minor disappointment that’s what the case on Friday
in the case of Nike, the stock then drops very significantly and erases
essentially all the gains of the last three or six months. So we are
still in a high risk environment. Eventually, I think that in the next
12 months, you will be able to buy most markets at a lower level than
today. The only stocks I bought in the last 10 days are from the fresh
issues in Portugal, Spain, Italy and France. - in CNBC TV 18 interview
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