- A period of weak stock markets and strong dollar is likely to come after the strong rally in developed and emerging markets alike, Marc Faber, the author of "The Gloom, Doom and Boom Report," told CNBC.
Between 2002 and 2007 we had a bull market in assets and stocks and a weak dollar, while in 2008 the opposite was true, Faber said Wednesday. This year, we bottomed out on the S&P 500 index but the dollar was weak.
Emerging markets have seen even stronger moves since the lows hit last year and in the spring of this year, Faber said.
China's stock market bottomed out in October last year and has recently shown signs of weakness, while Russia is down 20 percent from the peak, he added.
"I expect now for the next couple of months a period of a recovering dollar and weak assets," Faber said. "A strong dollar means global liquidity tightening."
The dollar will strengthen because the US economy is the least cyclical, but developing countries are more exposed.
"In a scenario where growth will be disappointing, I think emerging markets are vulnerable. I think we had huge increases in stock prices, a lot of markets have doubled in price," he said. ( source: http://www.cnbc.com/id/32384159 )
ps: Don't shoot the messenger. LOL!
ps/ps: Heard from a grabbing forex trading pro yesterday to long the USD?
ps/ps/ps: Is it me or has the ringgit moved the opposite direction again?
Hi, you need to watch the actual video itself. The summary is kind of confusing. Marc Faber actual words is that "the dollar will rise in the next couple of months"
ReplyDeleteMy interpretation is that he is only an expecting a rebound in the dollar and not a change of trend.
http://media.cnbc.com/i/CNBC/components/Syndicated%20Video%20Player/videomodule.swf?id=1212550607&pcode=cnbcplayershare&play=&base=http://plus.cnbc.com/stickers/partners/cnbcplayershare/
Swifz,
ReplyDeleteNice to hear from you again.
Many thanks for pointing this out.
It's great that finally someone realize that quite often than not transcript of what's said differs from what's said.
This happens so often to folks like Warren Buffett when they are interviewed. Interviewer asks the question, Warren answers and then, another journalist would attempt to construct an article based on what's said in the interview. And more often than not, things are taken out context and it does not give a true reflection.
Wow! now US$ toilet papers r back by popular demand.
ReplyDelete