Posted on 02/27/2017 9:13:25 PM PST by blam
'One man alone cannot make 'America great again'. That you have to realize," warns Marc Faber, the editor of "The Gloom, Boom, & Doom Report," reminding the world that the US stock market is vulnerable to a seismic sell-off that won't be caused by any single catalyst. His argument: Stocks are very overbought and sentiment is way too bullish for the so-called Trump rally to continue.
"Very simply, the market starts to go down. As it goes down, it will start triggering selling, and then it will be like an avalanche," said Faber recently on CNBC's Futures Now. "I would underweight U.S. stocks."
Faber, a supporter of President Donald Trump, isn't blaming the new administration for his bearish forecast:
"Trump, unlike Mr. Reagan, is facing huge, huge headwinds including a debt to GDP that is gigantic, as it is in other countries."
Faber lists rising interest rates and record earnings and margins as additional risks to the historic rally.
The Dow Jones Industrial Average closed at a record level for a twelfth consecutive session today with the S&P 500 to see the fewest declines in February than in any month since May 1990.
The investor said that markets in Mexico, Brazil, and Asia also have been picking up significant gains so far this year. However, Faber doesnt expect the worst-case scenario for all countries that have been benefiting from a strong run.
China looks quite attractive. For the next three months, money can flow into China. The economy, surprisingly, has begun to do quite well. We see that in retail in Hong Kong. We see that in the hotel industry, and we see that in demand for commodities, he said.
Faber says that resource commodities such as copper and gold would probably bring the traders solid profits this year.
(snip)
(Excerpt) Read more at zerohedge.com ...
I actually agree, one man can’t. One Man (the Son of God) can, and will if America only stops getting in His way.
Donald is a sign. There’s something a lot bigger cooking than this. There’s gonna be a faith revival, mark my words, or my spiritual weather sense is the worst in Christendom.
Farber is like Dr. Oz. Every month a re-cycled product pitch ...
that’s why this idiot works for fake business news.
No doubt these goons thought HILLARY was going to win the election,leveraged themselves with Progressive investments, and missed the market surge. They are hoping for a correction to make up for their losses.
If he’s been shorting this market as long as he tells others to do so, he would have bankrupted Bill Gates by now.
[[’One man alone cannot make ‘America great again’. That you have to realize,” warns Marc Faber,]]
Well thank goodness he’s employing thousands of people to help him, and he’s helping big business thrive so they can hire loads of people to get the economy going again, and he’s investing in our future with hte hlep of companies all across the nation the way a good smart businessman would then huh Marc?
If there was ever a sign to be long, it’s this guy’s advice to get out. I remember the 1980s.
If there was ever a sign to be long, it’s this guy’s advice to get out. I remember the 1980s.
Not that I myself do not have bearish concerns; One has to ponder how much this guy has left on the table doubting the rally all the way from SP 666. Astronomical. The stock market has more than tripled in the last decade. This has been a generational advance in the market, very unlikely to be repeated.
Retail in Hong Kong has never been worse. Especially in F&B. Don’t know what he is talking about.
Yeah... a lot of this sturm und drang is just silly entertainment. Doom and gloom talk, regardless of the actual underlying fundamentals, grabs people’s hearts with thrills of horror. (That’s how the global warming scare has carried on, almost literally like the apple that fell on Chicken Little’s head panicked him into shouting that the sky was falling. But the world has been through far worse and somehow survived.)
ZeroHedge has been totally in the tank against Trump.
They simply cannot take it that the DOW Industrials have set record highs on 12 straight days.
If it does it again tomorrow, it will have been the first 13th record setting day in succession, in market history.
ZeroHedge is perplexed by this, and is seeking any way it can to prevent the 13th day in a row.
Screw Zero Hedge!
In all my short life on this planet I don’t think I’ve ever seen any market this overbought for this amount of time.
Every day, ever week I think that it’s got to pull back significantly - but it never does.
Either a an economic boom of unprecedented proportions is in the offing and these prices are justified, or the short of a lifetime is right around the corner.
I’ve sometimes questioned what the market numbers really mean to a company. If they want to sell more stock they can sell it at a higher price if the market has soared... but ideally shouldn’t that be tied to the company’s own prospects. And then what does one do with the stock. If it doesn’t have substantial dividends, what we are looking at is a gambling game, not a profit sharing game. And gambling games have fads. I’d suggest looking at markets of highly dividend bearing stocks, for a view of something more realistic.
>In all my short life on this planet I dont think Ive ever seen any market this overbought for this amount of time.
>Every day, ever week I think that its got to pull back significantly - but it never does.
>Either a an economic boom of unprecedented proportions is in the offing and these prices are justified, or the short of a lifetime is right around the corner.
It’s the market betting on how the economy will be once Trump deregulates it.
People are gambling on the Trump optimism. And if a gamble had to be made on that horse race, a surer thing probably couldn’t be found for quite a while.
This may bub-bub-bubble to ridiculous levels in a Trump era. Well that’s the nature of the beast. If/when the government of the USA goes more foolish again, then we’ll see... another crash.
[This may bub-bub-bubble to ridiculous levels in a Trump era.]
And for a cautionary tale: the dot-com boom-bust.
That said, if a stock is set up to yield high dividends, it would be worth sticking with. I’d look for good holds, not just good future sells. And maybe the whole market will gravitate in that direction, with price more proportionate to actual profitability.
26 average P/E ratio as compared to 70 in 2009.
Would feel safer with lower 20s, which would mean a correction, and then as profits soar under Trump the maret would be AT this level with a 20 P/E.
At 2009’s P/E level, the market would be at 60,000 today.
One way or another we are facing massive debt levels, technology change and similar concerns that hasn't been encountered before. We are in a transition period that I have grave concerns about.
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