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Wednesday, June 27, 2007

Marc Faber: bonds turning bearish, stocks to lose real value

Marc Faber and others give their investment views today on The Market Oracle. A quote from Faber:

We are now at the onset of a major bear market in bonds worldwide that should bring interest rates above the level in 1981 when US Treasuries were yielding over 15 per cent. But this process will take at least 10 years. In this environment stocks will not do well in real terms but will rise in nominal terms. How high will depend on (US Federal Reserve chairman Ben) Bernanke's money printing presses.

I think I have already suggested that, adjusted for inflation, stockmarkets have already fallen far below their 1999 positions, and this looks like confirmation that more of the same is expected.

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