Aug 5, 2011
“The whole world is mad” – so says Marc Faber when beginning his latest observations of the markets in the attached Bloomberg TV interview.
“Stocks will be dropping 30%, then rallying 20%, and dropping another 30% - that’s going to be the pattern. And whoever can’t live with that shouldn’t be buying equities at all.”
And while the publisher of the Gloom, Boom & Doom report, said “there is a case to be ultrabearish about everything, and markets are going to go lower” he notes that markets are “extremely oversold” and he expects a “snap-back” rally in the U.S. Standard & Poor’s 500 Index of about 40-50 points.
That said, Faber sees no new highs in 2011. He concludes that he can already smell QE3, and that the “next week will be important to see if Bernanke is a true money printer or an amateur, and if he is a true money printer he will start printing soon.” We are confident that gold can’t wait to find out the answer.
This article was posted: Friday, August 5, 2011 at 3:25 am