Bloomberg today reports on Friday's 0.5% cut in the discount rate, and quotes Marc Faber saying "...it's an intervention... that is not justified [and will] create an additional set of problems at a later date.''
I'm mildly curious to see he was in Danang, Vietnam. And for Faber-watchers, there's news of a new channel featuring his interviews and predictions, on http://www.barreloworld.com/.
UPDATE:
See here for Marc Faber's interview on MoneyControl.com. He, too, recommends selling-out on the ups and staying in cash.
2 comments:
The latest actions are real poker play. betting on the river I think is the phrase.
This may work for now, but the bear will behere soon. if only I knew when exactly I would make it to the other side very wealthy!
Hi CU
It seems that the big picture is what matters, since we have had large-scale governmental interference for a long time.
A quote from four years ago - Marc Faber's GloomBoomDoom report May 2003:
"...we live in a world of
“plenty of liquidity”. This liquidity will flow somewhere, depending on the impulses and inclinations of large financial institutions, which include mutual funds, banks, treasury operations of large multinational companies, pension funds and central banks, as well as individuals.
Therefore, every investor, aside from focusing on macroeconomic data,should spend time trying to figure out where this huge liquidity pool will flow to next.
One of the problems of this excessive liquidity is, however, that for a long time some assets fail to decline to bargain levels, from where the expected returns would be compelling. This seems to be the case for the US stock market, where the current bout of strength is unlikely to mark the beginning of a sustainable long-term bull market."
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