Hilarious stuff out of the mentally ill Marc Faber.
He thinks stocks are going to rally from here, saying we might’ve put the lows in for the month. HOWEVER, U.S. equities will trade lower by as much as 40% in 2016, and have nothing to do with China. He points to homebuilder stocks and lack of wealth creation, in real estate and stocks, as a reason for stocks to trade lower, as the economy languishes into the pits of hades.
The wealth effect theory is a self fulfilling prophecy and hasn’t really done much, other than help the 1% get into the 0.5%, over the past 5 years. The economy is in the tank because confidence is waning. Confidence is waning due to lack of leadership. Period. End of Story.
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So the lack of wealth creation, in real estate and stocks, is a reason for stocks to trade lower? So he is saying that stocks have gone down so they haven’t created wealth, so they should keep going down. Wouldn’t that mean that any time stocks go down they should end up going down to zero, failing to create wealth all along the way?
As far as real estate being a loser, that depends on where you are. Seattle sure is booming and California too. Isn’t New York RE going to the moon also?
The fed even failed their secondary goal wealth creation
Hey frog. Willing to get raped by a refugee to prove the progressive line? Tell the truth for once. You know you would.
What he said is the appreciation in real estate, bonds, and some stocks has served to mask the overall weakness in the economy. Seems accurate, imo.
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Just confidence or that we’re on a downward slope of the credit cycle? Agree w/ the good Dr. This China stuff is an appetizer of what’s coming down the pike.
Confidence? All the new jobs go to immigrants. 49% of those asshat nerds in Silicon Valley are on a green card. Supposedly. We shipped all the retarded blue collar jobs overseas or Mexico for two decades now. There are no jobs but temps and friggin serving food or China made crap in a soon to be bankrupt box store. Slinging drugs is always lucrative tho. Professional students as well.
System use to be little broken – now VERY broken…needs of the 1% & corrupt lobbying practices have blindsided any real growth policies for the many…whatever happened to infrastructure plan? Self Sufficient Energy Policy? Taking care of our own citizens instead of a free trade policy that everyone abuses & takes jobs away from US citizens? If a country doesn’t protect its own – what is the point? Impossible to be leader because of ridiculous special interest lobbying. Directionless.
You watch too much TV.
Way too many people bearish. If that sticks as it rallies, well, maybe joke’s on the whole. We’ve been pretty bearish for quite a while too. Not exactly crash into bear market material quite yet. Plus need to get more retards on Robinhood first.
Fly, messenger and maybe downside target aside, isn’t he saying a lot of what you’ve been saying?
The real economy is continuing to slow down. If you look at major manufacturing centers such as in Southern California, purchasing surveys continue to drop quarter after quarter. The strong dollar effect is being underestimated. Construction and RE are the only thing holding the USA up. If higher interest rated put a lid on that catalyst, we are recession bound fast. The stock market is obviously starting to pay attention to this, not just China, etc.
ORANGE, CA — According to a survey of purchasing managers, the California manufacturing economy is expected to grow at a slower pace in the first quarter of 2016 compared to the fourthquarter of 2015. The California Composite Index, measuring overall manufacturing activity, decreased from 58.4 in the fourth quarter of 2015 to 56.7 in the first quarter of 2016, indicating expansion but at a slower pace. This marks the third consecutive quarterly slowdown in the growth rate of the manufacturing sector. Production, new orders and employment are all expected to grow at a lower growth rate compared to the fourth quarter of 2015, while commodity prices are expected to increase at a higher rate. Weaker growth in our major trading partners’ economies, along with continued high value of the dollar are dampening the exports of manufactured goods produced in California.