Saturday, September 14, 2019

Marc Faber : Millennials Are Doomed







Millennials Never saw The American Prosperity . In his Monthly Market Commentary dated on September 1, 2019 ,Doctor Marc Faber wrote quote : Sydney Williams writes about a new book, The Pioneers by David McCulloch, which follows several families that founded in 1784 the "the Ohio Company of Associates" and consisted of the ownership of 265,878 square miles – an area larger than France. Williams notes that the earliest pioneer families that migrated from New England to the Northwest Territories suffered hardships we can barely imagine. This is a fact that nowadays does not get much credit among the politically correct and socialist crowd. The early "colonization" of the Americas, which involved settlers moving on wagons westwards (how comfortable was that?) was heroic and required enormous courage and strength of character by the settlers and their families, as well as "mutual aid." The Ohio Company was indeed a developer with heart. It was founded on ethical principles with genuine concern for the well-being of investors, war veterans, employees, and residents. It also went far beyond selling land and actively helped manage the settlements it began. President Franklin Roosevelt nailed it in his 1938 Marietta speech when he praised the Ohio Company as ..."an organized society, unafraid to meet temporary adventure, but serious in seeking permanent security for its settlers." Currently, insider selling is extremely high. However, this does not imply an immediate crash. Just look at the 2007 to 2009 stock market decline. The S&P 500 topped out in October 2007 at 1576. By May 2008 (7 months later), the Index had only declined by 10%. The really big crash occurred between September 2008 and March 2009 when the S&P tanked by 46%. Therefore, if we now assume that the S&P 500 peaked out on July 26, 2019 at 3027, it is possible that (provided a bear market has begun) the stock market will only decline gradually in the near future, but more sharply in six months' time. To be fair, I also need to add that in 1987, the stock market topped out in late August 1987 and that it subsequently dropped by 41% within two months. [Similarly, in 1929, the stock market crashed in the autumn.] So, anything is possible.









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.

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