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Marc Faber thinks stocks will still sink lower again before QE3
Posted on 10 August 2011 with 3 comments from readers
Celebrated contrarian investor Dr Marc Faber told Bloomberg he did not think the stock market correction was over, having correctly predicted yesterday’s dead cat bounce.
The S&P will now move lower to test the July lows of 2010 with the S&P at 1010, he predicts. There could be another bounce back next week.
The Fed is underestimating the coming downturn but will get to QE3 when the S&P gets to 1010, he says.
Posted on 10 August 2011
Categories: Banking & Finance, Bond Markets, Global Economics, Gold & Silver, Investment Gurus, US Dollar, US Stocks, Video Channel
3 Comments posted by readers:
He looked like he was really worried that the Bloomberg staff didn’t have enough gold. I would love to know what percentage of the American public owns gold. I bet it is tiny. Like the percentage of people who have looked through a real telescope at the Moon or Saturn. That Skype worked well. E.ON will be cutting 11,000 jobs. To me it is amazing that the Germans will be shutting down their nuclear plants because a tsunami flooded one in Japan. Putin must love that.
I was disappointed in the reason that Marc Faber gave for investing in gold. In fact, I was disgusted by it!
It is a constant argument against buying gold and silver which MUST be challenged, namely that you can’t do anything with it nor do you get a dividend income from it.
Since gold and silver rose in price between 450% and 500% in the decade of 2000-2010, whereas bonds returned 94% or so for the investor and shares just 67%, the answer is bloomberg obvious. You sell some of your gold or silver when it’s made you a vast profit to benefit from it as a substitute for dividends. Then, you really can do something with it.
Until Marc Faber and the other bullion gurus start to tell investors, especially these sad US Treasury investors, that you can realise your magnificent gains in gold and silver
by turning it into fiat currency so that you can buy your second house, third car, first boat, acres of agricultural land and generally increase your lifestyle quality,
gold and silver investment will always remain the cinderella of investors.
Gold and silver are great investments in comparison to the rest. Sell some of it when you have seen the price go up and enjoy it. We can DO something with gold and silver! Of course we can!
QE3 needs a reason so the reason has to be good enough to get QE3 to pass through Congress so we will see some blood some time shortly and then we resume our bull ride back up again as everyone has learned over the last few years to not fight the trend. Everyone who fought the trend lost money and got wiped out completely for 2 years+. With QE3 things won’t be any different. Before QE3 we drop and most likely drop big time to justify QE3.