On CNBC yesterday, Marc Faber laughed out loud at the idea that investors have confidence in the Federal Reserve continuing its quantitative easing tapering. More likely, he argued, they will increase the stimulus. He also said that he wouldn’t be surprised if the S&P dropped 20-30% in 2014 and that a 1987-style crash is possible in the next twelve months. Precious metals are one of the few segments of the market that Faber thinks are undervalued right now.
“I think the market is very slowly waking up to the fact that the Federal Reserve is a clueless organization. They have no idea what they’re doing. And so the confidence level of investors is diminishing… How much can the Bureau of Labor Statistics lie about the true cost of living increases in the United States and elsewhere?… Food prices are going up, energy prices are up, health care costs are up.”
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Farber is WAY TOO BULLISH on stocks–US Equities.