5 replies to this topic

[pdx5]

http://www.bloomberg...6...&refer=home

Edited by pdx5, 08 January 2007 - 04:48 PM.

[arbman]

He's been also bearish for 4 yrs and counting! If he's been bearish all this time, I'd say he is a perma-bear... You know I came to conclude that the people demand for the higher returns with all the excess liquidity in their hands, yet the pricing has become increasingly more efficient as the world production and consumption has become more and more computerised and well connected with each other over the past decade. The ever increasing competition has changed the profit margins and the easy profits only belong to the a few who start a new wave of technology for a short while, and not to the ones who are making the well understood processes... So, although the fat profits are getting slimmer, the revenues are still healthy and it points out that the valuations will not become considerably favorable because (1) the consumption will not increase more all of a sudden, (2) the pricing will become even more competetive, yet I doubt that this is anywhere near the end of a great growth cycle and nowhere near a big depression... The debt and political problems have always been there, but as long as the people stay employed and the dollar stable, even the crashes will hardly change the secular trends. The larger trend changes will come when the revenues start to level off or decline, until then, the market should continue to correct and march higher. These are my last famous words! - kisa

[Jnavin]

If you read the article, you will discover that Faber is actually quite bullish on a number of Asian markets. He's selectively bearish on a global basis.

[greenie]

Internet is extremely deflationary. The last such things were the invention of railroads and then autos, which allowed the farmers from remote places in Midwest to sell their goods in the city, and suddenly the competition for those close to the city and well-placed increased many fold. Same is happening on a much larger global scale today.

Edited by greenie, 08 January 2007 - 05:20 PM.

[dcengr]

Thats the second crash call I read in 24 hours... It means it ain't gonna crash any time soon

[Rogerdodger]

On a more positive note, Japanese stocks may prove good bets this year, Faber said. Singapore and Vietnam are his top picks in Asia. ``It's going to have to be something unexpected and somewhat dramatic'' to spur the type of pullback that Faber predicts. ``The price of gold will continue to go up and probably very substantially,'' Faber said. ``In the long run, it's very clear that central banks are basically increasing the supply of money and the supply of gold is obviously very limited.'' Strategists at 14 of the biggest Wall Street firms all estimate that U.S. stocks will advance this year. The last time they were in agreement was for 2001, when the S&P 500 dropped 13 percent.

Edited by Rogerdodger, 08 January 2007 - 11:16 PM.