The Fed has lost Control of the Bond Market

“I argued, since last October that we would either have a 20% correction or we could be in a situation like 87, when the market rallied very strongly into August 25th and then fell by 40%. Though, I think that some of the tailwinds we have namely massive monetization and falling interest rates are no longer in place. We still have massive monetization, but it seems to me that the Fed has lost control of the bond market and this is very important,”

“I think, the only way this market can go up is that if the 10 or 15 stocks that are very strong, continue to drive the market higher, with the majority of stocks that have actually peaked out when the market reached on May 22nd, 1687, we are not far above the May 22nd high. So, the majority of stocks is actually lower than it was two, three months ago,” - in Bloomberg

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.