I forgot to post this a few days ago. Anyone read the round table in Barron's over the weekend? Marc Faber opened with this little nugget:
To say that economic and corporate growth in the U.S. were good is a joke. Measured in Polish zloty, the U.S. economy contracted by 19% last year.
What?!?
Marc Faber has forgotten more about capital markets than I'll ever know but I laughed out loud at this one. It was, by far, the single funniest thing I have ever read in Barron's, I go back to the late 1980's if you are curious.
Marc is, and has been, wildly bearish on the US due to asset inflation in housing prices being the catalyst for economic growth. He feels this is unsustainable and has a very gloomy forecast for the US. While he makes good points, such extreme forecasts very rarely turn out to be correct.
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7 comments:
Yea, I was reading it at the kitchen table and my wife asked what I was laughing about. When I read her the quote, she looked at me like I was crazy.
I left out that I did the same thing. I tried to tell my wife and to my shock, she wasn't interested. Thanks for the comment.
Just curious how much value you put in Faber's comments?
He is bearish on the U.S for many reasons, as is a number of high profile market watchers, Fleckenstein (sp),Roach, Bonner, Mauldin, etc. I also follow technical indicators which suggest a severe downturn very soon.
I try and follow a wide range of opinons, bulls & bears, (lots of bulls now) and take a conservative approach. If the market does tank, making up those losses is very difficult, and the older the tougher.
Perhaps you could post your thoughts on where we sit in the market place at the moment. ie U.S $, realestate, consumer debt, consumer savings, deficits, war, overvalued markets, etc.
I don't see a good case scenerio.
P.S. - Great site, thanks
yeah i read that as well. i missed the 2000 edition of that roundtable, (i dont think he was a memeber of it then) but, in terms of the polish zloty, the nasdaq in 1999 must have had 5 times the gains that U.S. investors had. was he bullish in 2000 based on that?
Does Faber have any verifiable track record for money management? Why is he accorded such exalted status? He is not only bearish on US stocks but frequently interjects overtly political and anti-American statements which I resent.
ah..so you are disturbed by his frequent anti-american comments?.
well perhaps you need to step outside of the western world and visit the places faber visits.
its good to be patriotic.but not at the cost of going broke. -thats what you would do if you were a Fox Fan
i dont find it funny at all! if i held polish zloty instead of the greenback ,i would have been 19% richer. funny money that?
why is it difficult to see that theres more to the world than just the US capital markets.?
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