What could possibly stop it?
Posted on 09/05/2013 3:08:13 PM PDT by TigerLikesRooster
Marc Faber: Three reasons a plunge is coming
Published: Wednesday, 4 Sep 2013 | 7:00 AM ET By: Alex Rosenberg | CNBC Producer
If you want to hear a rosy view on the market, you'd better not listen to Marc Faber.
The editor and publisher of the Gloom, Boom & Doom Report has long held that a correction was coming—and even though that thesis has not exactly played out this year, he's standing by it.
"In my view, we'll go back to the lows in November 2012—around 1,343" in the S&P
On Tuesday's "Futures Now," he provided three three main reasons for his bearish view.
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Reason one: The U.S. will follow emerging markets down
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Reason two: The Middle East will become a "disaster"
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Reason three: Interest rates have become a headwind
(Excerpt) Read more at cnbc.com ...
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Consider the name of his report. Of course he’s saying this.
He makes money on chaos. A lot of money........
One problem: When interest rates become a headwind, cash and bonds take a hit too.
Most people aren’t equipped or well-served diving indiscriminately into precious metals or other commodities, although these can provide some protection.
Hey, has anyone noticed that bulk coffee is at the cheapest level in five years?
What could possibly stop it?
Prec metals is not like buying real estate, hoping the price will spike and one can sell for a profit. Its purpose is to preserve ones buying power if the excess fed printing triggers inflation. Great story to illustrate this is recently a janitor died in Las Vegas NV. He only had 300 dollars in his checking account but over 3.8 million in gold/silver. In his liftime of work (50+ years) he did not accumulate 3.8 million in take home pay after taxes and living expenses. His metals simply preserved his buying power (the dollar he earned in 1950’s is not the same dollar earned in 2012). In 1980 a dollar brought you one gallon of gas, or 1/4 troy ounce of silver. Today that same 1/4 troy ounce of silver will buy you about 5.75 gallon of gas while the dollar will get you 1/4 gallon of gas.
Think you forgot to divide by 4 -- that 1/4 toz (worth around $6) will actually buy about 1.5 gallons of gas.
You are correct. Thank you for catching it.
Too bad the lessons from 1930 to 1950 have dropped out of the history books....
While you’re right about gold in the long term—take a look at this chart of the historical price of gold.
http://www.macrotrends.net/1333/gold-and-silver-prices-100-year-historical-chart
fyi, given historical similarities to 1980—this chart bodes ill for anyone buying gold right now.
before you get too excited about graphic analogies, take a look at this historical inflation adjusted price of gold.
http://www.macrotrends.net/1333/gold-and-silver-prices-100-year-historical-chart
fyi, given historical similarities to 1980—this chart bodes ill for anyone buying gold right now.
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