Monday, March 20, 2017
Marc Faber : US Market to Plunge for these 3 Reasons
Dr Marc Faber explained to CNBC that a "very complacent" market is ignoring three factors that might spark a correction: foreign currencies, the U.S. economy and the Trump administration."I believe the time will come when the weakness of the euro becomes uncomfortable for the Europeans, specifically the Germans, and then there will be a reverse," Faber said. "And the dollar will go down, and the money that flowed into U.S. assets will flow out of U.S. assets, and so the market is more likely to go down," he said."I believe also the policies of Mr. Trump will actually not reduce the government," Faber continued,
"Plus, fiscal spending means essentially an expansion of the government, so that is not pro-growth in my book," Faber added.
"We have roughly inflated asset markets. I also own shares, I also own bonds, and I also own precious metals. I also own real estate. So if asset prices go down, I suffer like you and everybody else," he said. "But at least I know that it can happen."
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.
Posted by Biz TV