Dr. Marc Faber is the editor of The Gloom, Boom and Doom Report and a major contributor to Strategic Investments. Marc has been headquartered in Hong Kong for nearly 20 years, during which time he has specialized in Asian markets and advised major clients seeking down-and-out bargains with deep hidden value.
From the tidal wave of e-mails and comments I have received from numerous different sources I am under the impression that most investors view the recent rally in the world’s stock markets as a bear market rally. I suppose we would need to define a bear market rally as a rally that fails to make a new all-time high (for the S&P 500, above the 1576 reached in October 2007) and is also followed by a new low for this cycle (below 666 for the S&P 500 reached in early March 2009).
With all the recent downturns in the markets, many investors aren’t sure where to put their money. Dr. Marc Faber, however, sees a light – albeit, a dim light – at the end of the tunnel, and offers some advice.
In the conclusion of this two-part essay, Dr. Marc Faber discusses what America needs to do to truly fix its energy consumption problem – a long-term solution, not a temporary Band-Aid.
A recurring theme of recent issues of this report has been that asset markets will remain extremely volatile.
“The greatest difficulties lie where we are not looking for them!” The above observation was penned by Johann Wolfgang von Goethe and may be very prescient in today’s economic and financial conditions.
If a shift from low volatility to high volatility signals a change for the worse in the macroeconomic outlook, then the collapse in the yield of short term US Treasury securities is a symptom of the current credit crisis, which has infected all the sectors of the credit market save the highest quality credits.
The concern with the U.S. economy does not exist in just one area. There is a battle going on between inflation and recession that does not show any easy answers. Dr. Marc Faber explains how the Fed and the private sector have been here before, and why we may never find a real winner.