Marc Faber Is Worried

[touchring]

Another timely top call after the March 2009 bottom call?

Marc Faber Is Worried

Posted on 01/13/10 at 12:37pm by Swing Trader

Legendary contrarian investor Marc Faber is bearish! While this may not come as a surprise to those who follow his investment ideas, it may be surprising because he wrote in his most recent January newsletter that he was bullish on U.S. stocks. So, what changed?

Mr. Faber changed his mind after participating in this week's Barron's roundtable discussion. He noted that everybody was looking for further gains in stocks. That
bullish consensus is already reflected in Bloomberg's latest investor survey, which registered its highest level of bullish sentiment since the survey began in 2007.

To see some of today's trading ideas, click here.

The overwhelming bullish consensus worries Mr. Faber. He believes a correction in U.S. stocks could come sooner than most predict. Mr. Faber believes the momentum players who drive the market could soon pull the trigger on favored stocks like Google (NASDAQ: GOOG), Research in Motion (NASDAQ: RIMM), Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL), which appear "toppy" based on their charts.

http://www.benzinga.com/general/8647...rimm-amzn-aapl

[MEDIA][/MEDIA]

[icm63]

Re: Marc Faber Is Worried

The video shows that Marc Faber called a rally of march lows, and maybe rally to then end of APRIL... well that was wrong...

The again he did say dont underestimate the power of the money printers... he got that right !

[Raz]

Re: Marc Faber Is Worried

The video shows that Marc Faber called a rally of march lows, and maybe rally to then end of APRIL... well that was wrong...

The again he did say dont underestimate the power of the money printers... he got that right !

icm83, the DATE of this video is March 9th, 2009. I clearly heard Faber say that the present gloom would lift and in answer to the lady's question he said that "right now (03/09/09)" he would bet that stocks would rally to the end of April (2009).

[touchring]

Re: Marc Faber Is Worried

icm83, the DATE of this video is March 9th, 2009. I clearly heard Faber say that the present gloom would lift and in answer to the lady's question he said that "right now (03/09/09)" he would bet that stocks would rally to the end of April (2009).

Granted that market circumstances might change from 9th March to end of April, wouldn't it be unfair to judge him based on the "to end of April" statement?

[Raz]

Re: Marc Faber Is Worried

Granted that market circumstances might change from 9th March to end of April, wouldn't it be unfair to judge him based on the "to end of April" statement?

Absolutely. While I'm not a subscriber to his "Gloom, Boom & Doom Report" I do follow him as best I can. In late April of 2009 he was somewhat concerned about the end of favorable seasonality for the US Stock Market, but he didn't advise raising cash until Mid-May 2009. And he made a pretty good call there because the S&P 500 had a sharp sell-off soon after. He also made a good call on buying additional Gold in late Summer 2009 - right before the rally and breakout above $1,034 basis Spot Gold.

No one is always right - except for me when I'm arguing with my wife.;)
But Faber does seem to be right more often than he's wrong.

[touchring]

Re: Marc Faber Is Worried

One of faber's quotes:

The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part.[18]

[metalman]

Re: Marc Faber Is Worried

One of faber's quotes:The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part.

so's this guy...