“Dr. Doom” Marc Faber: Stocks could fall 20% to 30%… easily
“We have big trouble coming…”
“If you believe that [Bernanke] means what he says,” explains Gloom, Boom, and Doom’s Marc Faber to a spell-bound Trish Regan on Bloomberg TV, “then you believe in Father Christmas.”
Simply put, Faber adds, “we are going to see QE99,” and while he notes that equities, bonds, and gold are “very oversold,” he would “rather buy bonds and gold than equities.”
From his views on Laszlo Birinyi to inflation, the ‘taper’, US housing, and China, Faber calmly warns that “the S&P could drop 20-30% from the recent highs – easily.”
“The only thing that I know is that I want to own some physical gold because I don’t want all of my assets in financial assets.”
Faber on whether problems will continue for the equity markets:
“Well, right now…
CITI: We’re ‘Shocked’ By The Surge In Negative Earnings Preannouncements
Earnings matter most for stocks.
This country’s stock market boom could put the Internet bubble to shame
High-Frequency-Trading (HFT) Algorithmic Programs dominate the equity markets in the US with as much as 80% of the volume in some markets.
… It’s different in Japan. In what seems like a flashback to dot-com trading in the U.S. in 1999, Abenomics Spurs Day Traders as Japan Stock Volatility Hits Two-Year High:
Sitting before a cluster of computer screens in an apartment with the drapes shut, it took Naoki Murakami seconds to make $3,500 betting $1 million that Tokyo Electric Power Co. (9501) shares would fall a fraction of a percent.
Day trading helps explain why Japanese individuals now account for more than 40 percent of the nation’s equity volume, or about as much as the overseas institutions that once were the biggest traders. They’ve also helped make Japan the most volatile developed market.
Dramatic price movements aren’t the only thing that’s made Japan a day trader’s paradise. Deregulation of margin trading opened the flood gates, Murakami said. After rules were relaxed in January, investors can borrow three times as much as their brokerage account balances and turn loans over the instant they exit a trading position…
“Now you can borrow endlessly,” Murakami said.
Pointing at price charts on his screens, the trader explained how each day he borrows millions of shares of fast-moving stocks like GungHo Online Entertainment Inc. (3765) and Fast Retailing Co. (9983), the most-heavily weighted company on the Nikkei 225, and sells them short…
One of Murakami’s friends, who goes by the blog name Tesuta, said looser rules let him leverage $4.5 million in cash into as much as $67 million in daily stock bets. He held up a hand-written ledger and showed his account balance at SBI Holdings Inc. as proof. He asked that his name not be cited for privacy reasons.
The number of shares traded by individuals rose to a record in May, some 43 percent of Japan’s total equity volume…
Today’s entertainment: U.S. financial sector thinks it’s just about ready to ruin the world again
“It’s been about five or six years since we last crippled every major market…”
Claiming that enough time had surely passed since they last caused a global economic meltdown, top executives from the U.S. financial sector told reporters Monday that they are just about ready to completely destroy the world again.
Representatives from all major banking and investment institutions cited recent increases in consumer spending, rebounding home prices, and a stabilizing unemployment rate as confirmation that the time had once again come to inflict another round of catastrophic financial losses on individuals and businesses worldwide.
“It’s been about five or six years since we last crippled every major market on the planet, so it seems like the time is right for us to get back out there and start ruining the lives of billions of people again,” said Goldman Sachs CEO Lloyd Blankfein. “We gave it some time and let everyone get a little comfortable, and now we’re looking to get back on the old horse, shatter some consumer confidence, and flat-out kill any optimism for a stable global economy for years to come…
Mortgage Rates on the Rise; Repeat of Lead-Up to 2008?
Interest rates are crucial. Once rates rise substantially then it will become impossible to service the Federal debt without massive money creation. Doom for the markets and doom for the U.S. Dollar will surely follow. This will make the 2008 credit collapse seem like a small hiccup, by comparison.