Monday, October 1, 2012

US Economy has 100% Chance of Entering Another Recession – Marc Faber - Wall Street Pit

Gloom Boom & Doom Report publisher Marc Faber spoke to FOX Business Network (FBN) about his concerns regarding investing in the United States. Faber states that he is “bearish about practically all assets near term” and that “we’re entering a correction time.” Faber further states that equities, gold, and other commodities “will face some profit taking.” Excerpts from the interview are below, courtesy of Fox Business Network.

On Gold in today’s economy:

“It has a huge rally from around – the low was a 1522 last December and we are now over 1700 and I think we need a correction here. In fact, I am now bearish about practically all assets near term I think we’re entering a correction time where there will be some disappointments, where stock markets, from the recent times can easily drop 20%.”

On being bearish on almost all assets in “the near term”:

“I’m not 100% in cash, for the simple reason that I could be wrong, but in general I think that people that have a heavy exposure to assets being that equities, or gold, or other commodities. I think they will face some profit taking here.”

On whether or not the U.S. will enter a recession:

“I think some people in the US, actually the ECRI already say that the US is in a recession. But of course we have to consider the following, an economy is a very large vessel, there are different sectors. And some sectors are improving like housing in the U.S. is improving. The problem with improvement in housing is that stocks have already gone up very substantially, they more than tripled from their low. And so we are ahead of ourselves. The Greek stock markets from its low is up more than 60%, so a 20% correction is nothing unusual.”


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