Monday, April 30, 2012

Marc Faber : I would be careful to be heavily Short Stocks

Marc Faber : Yes. My view was that last October, November and December that sentiment was very negative, there were large short positions outstanding and most people were actually predicting a meltdown in markets because of Greece and the opposite happened. Because of Greece the market rallied, because of Greece they printed money. And in a money printing environment it’s just tough to be very short because in real terms asset prices may go down, but they go up in nominal terms and so I still feel that the risk is fairly high by being short the entire market. Now, if we talk about being short individual situations where there is deterioration in the business of one sector or one company, then yes. I mean there are people who can pair trade, in other words, they are short one group and long another group or short one group, or long one stock and short another stock and they do it quite successfully. But in general, I would say in this money printing environment, I would be careful to be heavily short stocks. - in The Financial Sense NewsHour - 06 Apr 2012
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