Wednesday, August 28, 2013
Marc Faber : We are dealing with Markets today that are basically manipulated by the FED
HardAssetsInvestor: What are your views on the stock market?
Marc Faber : Following the huge increase in stock prices we had since March 2009, when the S&P was at 666, a 20 percent correction would not surprise me at all. I don’t look at the 20 percent correction as a huge decline in stock prices. In Asia, we’ve had corrections in the order of 20 percent in many markets. We had a huge decline in bond prices in the U.S.
In July 2012, yields on the 10-year bond were at 1.43 percent; we’re now close to 2.9 percent. Yields have doubled. The longs have been hit quite hard. I don’t regard a 20 percent correction in stocks as a huge bear market.
HAI: So no more than 20 percent?
Faber: We have to assess stocks when we are there. We don’t know to what extent the Fed will continue bond purchases, increase bond purchases or even buy stocks. We’re dealing with markets today that are basically manipulated by the Federal Reserve and other central banks. That’s why any forecast is very tentative.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
Posted by Lisa Chapman