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Marc Faber, author of "The Gloom Boom And Doom Report," offers his latest update via The Globe And Mail.

And the ongoing rally in the stock market hasn't made him any less bearish.

From The Globe And Mail:

Faber: “What was the trigger of the ‘87 crash when markets fell 21 per cent in one day? What was the trigger of the Nasdaq crash in 2000? What was the trigger of Japanese crash of 1989? What was trigger of 2007 crash that brought global stocks down 50 per cent? We don’t know these things ahead of time, but something will always move markets up and something will always move them down. I would guess at the present time, given markets from the 2009 lows have in many cases increased by as much as 100 per cent, that they are no longer very cheap. .... Something could come along, geopolitically or otherwise. I would be very careful being overweight equities. I still have 25 per cent in equities and 25 per cent in corporate bonds.”

...

“In the 40 years I’ve been working as an economist and investor, I have never seen such a disconnect between the asset market and the economic reality ...

Quote:Asset markets are in the sky and the economy of the ordinary people is in the dumps, where their real incomes adjusted for inflation are going down and asset markets are going up.

“Something will break very bad.”

Question:-
Is he talking economy (investment) or politics? Or both? i am puzzle.

Market undertone still very strong, for how long ?

Aim to be like the bamboo plant. it will not break even at the peak of the typhoon.

(14-05-2013, 08:43 AM)cfa Wrote: [ -> ]Market undertone still very strong, for how long ?

this year is supposed to be the year for equities!

If you are a perma-bear you will be proven right someday. It's not a tough job.

While enjoying grazing with the bull now, it's quite important to keep in mind always:

{Markets values are fixed only in part by balance sheets and income statements; much more by the hopes and fears of humanity; by greed, ambition, acts of God, invention, financial stress and strain, weather, discovery, fashion, and numberless other causes impossible to be listed without omission.}

(Not to be trapped by the bear may be more important than charging with the bull)

When things get too hot, there will always be 2 camps - bullish vs bearish.

The question now is when? And which one will drop first - properties or stocks?

Everything cannot be too good for too long, needs a breather! Things cannot go up in a straight line as everybody knows!

Better late than never is the wisdom of common practice. But in the stock markets i think it is better early than never. Never mind when if you have made your money.

The famous saying ; A dead clock is right 2 times a day.

Yes, don't be too greedy, leave some for others, ahaha

(14-05-2013, 04:57 PM)Temperament Wrote: [ -> ]Never mind when if you have made your money.