Marc Faber : I think there is a lot of money on the sidelines. Some will stay there, because people who don't trust the system anymore will just keep it there. Some will be invested, but it may not go into equities. It could go into some other asset class, perhaps hard currencies such as gold and silver, or real estate, which is now relatively inexpensive in the U.S.
As for volatility, it increased sharply last year, but
has diminished over the last three-months. I expect we'll see
increasingly very high volatility in all asset classes in the next few
years. The money in an environment of negative real interest rates will
flow. It might flow into fewer and fewer stocks, or into fewer and fewer
assets that could go ballistic on the upside. - in the aurereport