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Gloom, Boom & Doom Report Editor Marc Faber on the potential for a market crash.
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Well investor worries sending the ten year treasury yield to even another record low today it doesn't seem that there's any bottom -- this but.
Does this flight to safety -- more trouble ahead.
Mark -- -- is the editor of the gloom boom and doom report and he's joining us now.
-- a lot of people said.
Thankfully the bell -- because it was a very tough day especially when you look at that flight to quality in two US treasury specifically the ten -- but also the US dollar.
-- -- how worst is this get we were just talking with Howard ward about.
The problems in the European zone -- banks etc.
does -- get worse and worse some worsen what -- turn it around mark.
What do I think about the market that's actually not active old -- badly because that view is over the last ten days has gotten worse and worse out of Europe.
But the market actually -- the -- on May eighteenth.
And I think the market is very oversold at the present time sentiment these very negative.
The US dollar in bonds are very -- football.
So weak would have a -- the trend rally.
But I don't see a huge increase in stock prices.
And -- I think before.
If we have that new high S&P in other words above.
14100 threaten key tool in the summer.
Say July August.
I think -- -- would likely follow in their fall in other words in October November.
And bring stock prices found.
Very meaningfully.
Well.
You actually think that we're at the tale land of a rally that began in March 2009.
Don't -- march 2009 that's when that.
The Dow was at 6000 SV was it 600 are we going back to those levels you think.
Maybe -- up going down to those levels but I think we can easily drop below a thousand on the S&P.
A balance that that the SNB has outperformed just about every other market in the world.
Over the last twelve to eighteen months.
Because most markets even some -- -- the US.
Peaked out.
On a real on April's guys sorry on May sixth of 200911.
And then -- -- to.
October and then rather -- get -- only the US market mate and you write most other markets around the world -- to make and you act.
So you would look at all the markets in the world -- we have to say.
That -- be passed.
Actually outperformed the other markets.
And that is and on confirmation by other markets compacted yes -- be.
Which is that make it deep -- -- -- But what is the point of being in -- -- on I'm gonna.
-- the -- side here that we still have companies the apple Intel that are making products people are buying them.
This say for example an SAP update -- -- hit record numbers you're telling me that it's pointless to be in companies that have good names and good quality businesses.
No I'm not saying that -- they -- that you also can go down because earnings can also these -- points.
If you pregnant somebody -- has been trained to be in the UX.
Over the last 2510.
Threaten the years it's very beneficial for corporate growth rates.
Because it throws a mostly into the coffers of companies.
But eventually.
The money printing stops and then corporate profits don't grow anymore.
And we have many problems in the world Europe is not going to grow.
-- that -- slowing down very meaningfully.
-- -- -- all the commodity producers.
We've just happened you were low.
In oil and in copper today industrial commodities -- very weak.
It's a sign that the global economy.
-- actually slowing down very meaningfully.
And the united.
Few.
Weeks almost.
Certainty.
Will be in recession -- -- in a year.
A global recession by the way in in such an environment -- -- as Liz pointed out.
You say aren't many stocks that you be interest that one where the other are are you just putting all your money into gold right now I know you prefer the actual physical gold -- -- youth I like physical gold but I think we're still -- a correction -- but like the stock market I think gold that's been oversold.
And we could rebound.
I would own some affairs but not with the -- -- they've making new highs but we still view.
God may be in shares you better off that means sovereign bonds -- will go bankrupt that can't paid the interest.
Mark you know you have the most wonderfully devilish laugh and like any any guess we've ever had affected if there -- several roles -- stock never stop believes you would -- would be the personal -- such a great.
There -- I think.
The -- Q would all -- investors going forward should not be thinking how much money I can make but how legal can I -- He'd go right yeah right not to lose -- -- and because the people that are listening to people who -- them to -- face spoke.
I think very rich -- they lose a lot of money even at these rights.
By fog -- that laugh mark Farber we love having -- on come back any time we appreciate it thanks for being here.
