Beginning by disavowing Mario Gabelli of any belief that rising stock prices help 'most' people ("Fed data suggests half the US population has seen a 40% drop in wealth since 2007"), Marc Faber discusses his increasingly imminent fears of the markets in this recent Barron's interview.
Quoting Hussman as a caveat, "The problem with bubbles is
that they force one to decide whether to look like an idiot before the
peak, or an idiot after the peak. There's no calling the top,"
Faber warns there are a lot of questions about the quality of earnings
(from buybacks to unfunded pensions) but "statistics show that company insiders are selling their shares like crazy."
His first recommendation - short the Russell 2000, buy 10-year US
Treasuries ("there will be no magnificent US recovery"), and miners and
adds "own physical gold because the old system will implode. Those who own paper assets are doomed." (more)
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