Mark Faber, Mr. Doom, this week on Realaudio
Mark Faber can be heard this weekend on the financialsense dot com, link below. He has a somewhat contrary view currently. He sees the US economy
slowing down due to the contraction in the money supply, believes commodities are over bought, China theme over played, Asian
stocks not the great buy they were a year ago, dollar short term over sold.....He looks for a
month or two of steady to stronger dollar, weaker stock market, potentially very much weaker, and higher bonds. After that it would be back to the themes of rising metals and falling buck.
Mark makes continual mention in the interview of the decline in money
supply which in the last two months he says has been due to slow down in home equity and consumer lending.
Previous declines in the money supply of similar amount have resulted in bond market or stock market
falls of significance....like 1987!!..Previous declines have been FED induced....this one seems to be a consumer response....They've borrowed all they can and businesses are not borrowing to increase capacitiy and inventories as they normally do in an expansion. PRETTY IMPORTANT STUFF, me thinks.....We hear continual talk of all the liquidity and money the fed is printing, but how does this square with declines in money supply....other thoughts on this, please??
Listen to interview at the site below...
netcastdaily.com
One investment he likes, seemingly here even, is energy...
I am reminded that stock market rallies have in the past, and more than once, ended when the energy sector strengthened.... |
