Sunday, March 29, 2015

The US Stock Market -- This is a very long Bull Market By any historical Standard



Marc Faber : Globally investors can divide them into many groups, some are more hard asset oriented. A lot of private equity firms are looking at real estate, both in Asia and especially in Europe, because we understand that in Europe, the commercial yield on properties or the yield on commercial properties is 4-5% compared to zero interest rates on deposits and compared to bond yields of 0.5%. It is quite attractive.

Some people are looking at hard assets; other people believe that stocks will continue to go up for a few years. In my view, this is an assumption that is very tenuous for the following reasons. As you know the stock market in the US bottomed out on March 6, 2009. So we are now six years in a bull market. By any historical standard, this is a very long bull market since 2011, we have not had more than 11% correction. The US market is very high. In the case of India, the market performed very miserably between 2006, 2007 and essentially 2013 because of the depreciation of the rupee. So the market is actually taking off after 2013 and the bull market could last longer.

It does not however rule out meaningful corrections because we had a very strong increase in equity prices. So I would rather make investment in India than, say, in the US, but I always advocate that I also own gold and I own real estate.




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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