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Marc Faber "US Stocks Need To Drop 40% To Become Attractive"

Tyler Durden's picture




 

"The market is way overdue for a 20 to 30% drop," Marc Faber warns, "but that is not what worries him." Sarcastically reflecting on the typical talking-head that appears on financial media, Faber adds you won't "hear this view from someone who is fully invested," as he "hopes the market drops 40% so stocks will become - from a value point of view - attractive." The outspoken Faber channels Jim Grant as he exclaims, "the experience with quantitative easing is a complete failure. It has lifted asset prices and created asset inflation, but it hasn't lifted the standard of living of most people in the U.S. nor worldwide."

 

"I think the market is way overdue for a 20 to 30 percent correction,"


"nothing worries me... In fact, I'm hoping for the market to drop 40 percent so stocks will again become—from a value point of view—attractive."

"But that is not the view of someone who is fully invested—obviously not."

"Stocks are by-and-large fully priced"

"I think the experience with quantitative easing is a complete failure. It has lifted asset prices and created asset inflation, but it hasn't lifted the standard of living of most people in the U.S. nor worldwide."

On the chance of a bounce (and what next?)

"If the rebound fails around 1,820 [on the S&P 500] and then the market starts to drift again on the downside, and we see important shares for the market such as General Motors, GE, MMM, Coke ... failing to make new highs, then I think we can assume that something more serious is in the offing."

 

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Wed, 02/05/2014 - 21:51 | 4406477 Frank N. Beans
Frank N. Beans's picture

Marc's getting a lot of airtime lately.  He's getting right-er every day.

Wed, 02/05/2014 - 21:56 | 4406499 TideFighter
TideFighter's picture

40% doesn't get us to 666. We all know that's where we left off, bitchez.

Wed, 02/05/2014 - 22:11 | 4406547 radwon
radwon's picture

Agreed. 666 the likely "floor stocks will find".

Wed, 02/05/2014 - 22:28 | 4406589 Dr. Engali
Dr. Engali's picture

If and when this thing does finally break, I believe we will see S&P 400.

Wed, 02/05/2014 - 22:32 | 4406602 Boris Alatovkrap
Boris Alatovkrap's picture

Marc Faber is sound like Boris' wife, "Boris, you are need drop 40lb for becoming attractive"!

Wed, 02/05/2014 - 22:45 | 4406619 akak
akak's picture

If Boris wife is look like Mark Faber also, suggest Boris not to lose the 40 lb.  Maybe even gain.

Thu, 02/06/2014 - 00:17 | 4406842 RafterManFMJ
RafterManFMJ's picture

To be fair, you've never seen Marc in a blonde wig and 5" stripper heels.

Thu, 02/06/2014 - 00:20 | 4406843 LetThemEatRand
LetThemEatRand's picture

Yellen wears flats.   So correct.  

Thu, 02/06/2014 - 01:46 | 4406987 zaphod
zaphod's picture

There need to be at least 40 times fewer Faber articles for me to bother reading them again.

Thu, 02/06/2014 - 06:11 | 4407160 TheLooza
TheLooza's picture

So what. Faber needs to grow a new head of hair to become attractive, and that's about as likely as a 40 percent drop.  

Wed, 02/05/2014 - 23:16 | 4406731 FredFlintstone
FredFlintstone's picture

40lb or 40kg?

Wed, 02/05/2014 - 23:38 | 4406775 Dr. Engali
Dr. Engali's picture

I'm thinking 40 pints.

Thu, 02/06/2014 - 07:21 | 4407205 samcontrol
samcontrol's picture

Most of my stuff was down 40% last year, before you guys jump on me , I managed only (:) a one digit loss! yuppy.! ?, !

...those are probably really good for this year, miners! reits! and bio.

the likes of paas,exk,agnc,arr,cytx, nbs.

I bought SPROTT physical silver while back at 14.
Yesterday i tripled my position at 8.
Live in
Argentina and cannot buy the amount phys I am talking about here.
I must partially continue with the best paper I can find.

OT. .THE building Yesterday all over the NEWS now 24 hr coverage
. 2days national....WTF!?
YET they still have not heard what the DEPOT and company are about...fucking sheeple... " justice will investigate the company" lol.
lucky i read 0hdge.

Thu, 02/06/2014 - 07:50 | 4407225 negative rates
negative rates's picture

But the real question is, can you spend all that in time.

Thu, 02/06/2014 - 08:01 | 4407228 samcontrol
samcontrol's picture

not sure of the question..?

but with my standard of living Iwe have it will be very hard to spend or lose all my money before I die, and will be leaving to the family multiple properties.

Thu, 02/06/2014 - 08:19 | 4407238 negative rates
negative rates's picture

The first part you right at least.

Fri, 02/07/2014 - 01:22 | 4409493 MeelionDollerBogus
MeelionDollerBogus's picture

So let's get this right, PSLV is paper, you never hold silver in your own hands,
AGQ is paper like PSLV but is 2x leveraged, where as PSLV acts as a 1.17x ETF.
Why buy this? No silver atoms are in YOUR hands, your skin doesn't contact those atoms.
Am I right? silver1.17 x 63/263 = pslv approximately

Sarc, are you hiding somewhere in here?

Thu, 02/06/2014 - 00:33 | 4406875 BringOnTheAsteroid
BringOnTheAsteroid's picture

Boris buys wife a bunch of flowers.

Boris wife says: "Look like I spend night on back with legs up in air".

Boris says: "Why, we no have vase".

Thu, 02/06/2014 - 00:32 | 4406867 BringOnTheAsteroid
BringOnTheAsteroid's picture

There won't be a system left, there's too much leverage. A 40% drop will destroy the collateral chain, too many companies and banks will go bust. We are approaching the end of debt and credit expansion.

This is why I doubt short positions will be paid out, the trades will be reversed, the markets will be either shut down or burnt down. The financial asteroid is well on it's way and has probably already entered the atmoshphere. After the last few years if people can't see a system in its death throws then you ain't going to see a freight train barrelling down a train track when you're car is broken down across them.

This is it people. Forty to fifty years average that most readers on ZH have experienced of unprecedented peace and prosperity. The contrast to what is coming will be breathtaking. I imagine for some time we will be frozen in fear, unable to adjust to the new reality. We have pushed the limits and way beyond of our treatment of the environment. The population has expanded like a bacteria colony consuming all in it's wake, like soldier ants rampaging through a jungle leaving bare twigs and and no living thing behind. We have long since dispatched with integrity in business, banking and politics. Greed has reached its climax.

It's not going to be fun. 

Thu, 02/06/2014 - 03:26 | 4407077 Larry Dallas
Larry Dallas's picture

Does that mean we don't have to be politically correct anymore when that happens?

Thu, 02/06/2014 - 09:23 | 4407373 Freewheelin Franklin
Freewheelin Franklin's picture

The only questions are:

 

1. Who will be the "Strong Man" that has a "Plan" that will "save" us?

 

2. Who will the "Scapegoats" be?

We know it won't be the bankers. They'll all be hiding in Belize or Costa Rica. The Jews would just be redundant. So, I'm guessing teh evul Koch funded Tee Bugger?.

 

Thu, 02/06/2014 - 18:41 | 4409480 MeelionDollerBogus
MeelionDollerBogus's picture

Only one cure for all this leverage: MOAR LEVERAGE!!

Thu, 02/06/2014 - 00:02 | 4406822 q99x2
q99x2's picture

I'm back in at 667

Thu, 02/06/2014 - 00:19 | 4406844 RafterManFMJ
RafterManFMJ's picture

Set my limits at 668. PULL IT!

Thu, 02/06/2014 - 00:38 | 4406892 BringOnTheAsteroid
BringOnTheAsteroid's picture

"In" where, there will be no system. The algos will tear themselves apart when the first drop hits the tape. The investment banks have to go for a start because they are the rot at the heart of the system. The easy money ride is over of clikcing a buy or sell button and seeing dollar signs in your eyes. We'd all be lost without our little gambling habits on the stock market. 

Wed, 02/05/2014 - 22:46 | 4406647 tip e. canoe
tip e. canoe's picture

no, but it does get ya to around 999, the new & improved 666 (adjusted for inflation).

Wed, 02/05/2014 - 23:05 | 4406707 Zero guest
Zero guest's picture

It will take 75% over three years to get us to the other boundry of the expanding diagonal triangle that started in 2000.

Thu, 02/06/2014 - 00:35 | 4406877 ebworthen
ebworthen's picture

TideFighter said:  "40% doesn't get us to 666. We all know that's where we left off, bitchez."

Exactly.  I've been pounding the desk for S&P 666 as true valuation for five years; it is the only real valuation that reflects reality and Satan sitting in reign in Washington and Wall Street as reality.

Thu, 02/06/2014 - 07:08 | 4407201 negative rates
negative rates's picture

You missed that Vicksburg packet. In this case we don't read all the books, so we can't find all the answers.

Thu, 02/06/2014 - 00:56 | 4406925 Canoe Driver
Canoe Driver's picture

Listen math majors, the trebling of the Fed balance sheet puts a new floor in. It can be calculated.

Thu, 02/06/2014 - 07:43 | 4407218 Moe Howard
Moe Howard's picture

Obamao got us to 666. Trillion more in debt that is.

Wed, 02/05/2014 - 22:18 | 4406561 Cabreado
Cabreado's picture

Slight correction:  he's getting milked by a media that doesn't particularly care; he's had it right for a long time, passes along the hints, and plays it like a gentleman.

And I'd guess Faber would agree:  don't put all your eggs in his basket -- he can weather the storm more than most.

Thu, 02/06/2014 - 00:39 | 4406894 The Dunce
The Dunce's picture

Faber is wrong.  And here's why.  Yellen won't let the market collapse.  She'll keep inflating the bubble by printing more money.  Good new for you gold bugs.  Word to your mother.

Thu, 02/06/2014 - 18:38 | 4409472 MeelionDollerBogus
Thu, 02/06/2014 - 08:31 | 4407256 stocktivity
stocktivity's picture

He's been wrong for 5 years straight...and still getting airtime.

Wed, 02/05/2014 - 21:52 | 4406480 Osmium
Osmium's picture

40% would be a good start.

Wed, 02/05/2014 - 22:02 | 4406512 kaiserhoff
kaiserhoff's picture

That it would, but even then, which stocks?  Europe and Asia haven't had real growth stocks for decades.  The US is following suit.  As industry groups go transportation, energy, and mining are possibilities, but that smacks of a third worldish list, with all the possible boom and bust cycles of Australia and Canada.

It's hard to make a solid case, based on fundamental analysis, for any of these turkies.  That may be as much a problem as valuation.

Wed, 02/05/2014 - 22:36 | 4406615 BandGap
BandGap's picture

I like how people throw around these percentages. My opinion is that if this market drops 30%, it is just as likely to drop 75%, or 90%. This is like losing blood, once you're past a certain point it doesn't matter when you stem the bleeding.

And I like Marc, but really, who the fuck is going to have $$$ to buy stocks if they can't get enough food or heat? Again, just to cover the loses there isn't going to be much left over to begin a rebuilding process. Hell, think of the unwinding that will take place. The market doesn't rebound past a certain point.

Just sayin.

Wed, 02/05/2014 - 21:54 | 4406488 gafgroocK
gafgroocK's picture

 

 

 

ok, I'll butter up the bread for 50%

Wed, 02/05/2014 - 21:58 | 4406507 philipat
philipat's picture

There is no bread. Let them eat cake.

Wed, 02/05/2014 - 21:53 | 4406490 DirkDiggler11
DirkDiggler11's picture

One question, why is Faber on TV doing interviews almost daily ?

Wed, 02/05/2014 - 21:55 | 4406494 onelight
onelight's picture

Cash money...cash on the barrelhead...keeps a lot of people talking..

Wed, 02/05/2014 - 21:56 | 4406500 Conman
Conman's picture

Obviously he want to show off his awesome pony tail. Hopefully Marc will let me ride in his tank when he gets it.

Wed, 02/05/2014 - 22:15 | 4406545 akak
akak's picture

The only look for a man more idiotic and repellant than the beard with no mustache (the Amish Look) is the bald man with the grey ponytail. 

What the FUCK are they thinking???

Thu, 02/06/2014 - 17:54 | 4409235 MeelionDollerBogus
MeelionDollerBogus's picture

OK, now picture Faber with a Chilton Mullet.
Oh, did I forget to mention not putting coffee in your mouth first?
Your bad, should know better by now.
Hey, at least it wasn't the MsCreant Yellin special.
I hear it's extra-moist today.

Wed, 02/05/2014 - 22:26 | 4406579 Wilcox1
Wilcox1's picture

It is an awesome pony tail.  It is like punctuation to his view.  Marc Faber = financial syntax.

Wed, 02/05/2014 - 21:58 | 4406501 philipat
philipat's picture

It is ironic that in the above screen shot, the caption below Marc's picture is "Stocks find a floor". It's fairly obvious where CNBS is coming from?!!

Wed, 02/05/2014 - 21:58 | 4406502 kurt
kurt's picture

Refreshing in its simplicity.

Wed, 02/05/2014 - 21:56 | 4406504 Iocosus
Iocosus's picture

Standard of living has not improved? No shit, I'm back to Ramen noodles and Nattie Ice.

Wed, 02/05/2014 - 22:39 | 4406624 Charles Nelson ...
Charles Nelson Reilly's picture

Try Natty Boh, should be cheaper. it tastes like shit but after the 5th one you can't taste it anymore

Wed, 02/05/2014 - 22:43 | 4406636 BandGap
BandGap's picture

My oldest had me try that before golfing last summer. Tasted like mop water. NEVER drink it warm. My piss would taste better.

Wed, 02/05/2014 - 22:39 | 4406626 BandGap
BandGap's picture

The Breakfast of Champions.

Wed, 02/05/2014 - 21:58 | 4406510 Spitzer
Spitzer's picture

40% ?

That's just Marc's sentiment call. It has nothing to do with fundamentals or when this 35 year long credit cycle ends, if ever.

When we have a currency crisis, which is the only way this credit cycle will end, stocks will be valued on real yields and fundamentals. 8% real yields across the board is would be a good start.

 

Wed, 02/05/2014 - 22:03 | 4406520 lordylord
lordylord's picture

I don't doubt it.  A crash in the stock market will only hurt the middle class.  Destruction of the American middle class is priority #1 in the US.

Wed, 02/05/2014 - 22:11 | 4406544 FreeMktFisherMN
FreeMktFisherMN's picture

false. A market based on real valuations that are predicated on real earnings (and earnings denominated in sound money as opposed to this export BS) will benefit everybody who actually creates value. 

Wed, 02/05/2014 - 22:13 | 4406551 lordylord
lordylord's picture

Well...duh...in the long term.  Did you come up with that all by yourself?  You should start a new school of economics based on your wonderful insight.  But that is not the reality of the situation.  A 40% correction in the stock market would kill the middle class right now. 

Wed, 02/05/2014 - 23:01 | 4406696 laosuwan
laosuwan's picture

A 40% correction in the stock market would be a symtom of the death of the middle class, not the other wa around.

Thu, 02/06/2014 - 00:08 | 4406832 therevolutionwas
therevolutionwas's picture

...mission accomplished...

Wed, 02/05/2014 - 22:07 | 4406533 losingconsciousness
losingconsciousness's picture

More random bullshit spewing from the mouth of this charlatan. 40%, 50%, 80%, 100% drop. It's all good as long as it's ludicrous and I sound like a f-ing lunatic bear, with no technical or fundamental reasoning behind the numbers other than hiding behind the value proposition. What a load of crap.

Thu, 02/06/2014 - 00:30 | 4406866 ebworthen
ebworthen's picture

So you think an utterly corrupt interventionist FED benefitting TBTF banks and corporations while looting the Treasury and working citizens is a good thing, or that the "market" is still based on "fundamentals"?

Thu, 02/06/2014 - 01:04 | 4406945 chump666
chump666's picture

He is referring to the insiders that are bailing out.  You get market leaders (stocks) unable to drag this thing higher, then you could have a dump.  Now add that to fully priced markets like Japan, where o/s investors are getting out,  a major sell will hit all indices at once. So the writing is on the wall for a major sell.  The question is, do we get one massive crash at 30 to 40% or two, three days of major drops = 40%?  The new lows for 2013 and 2014 will be the dip buying he is referring to...but a crash could set off other problems like bond flows, margin and credit spreads widen to hell and/or Asia completly implodes, China decides to say f*ck it and takes on Japan etc etc etc.

Thu, 02/06/2014 - 02:26 | 4407019 satoshi911
satoshi911's picture

Who knows what he said, ... just yesterday on ZH "FABER was telling us to BUY T-bills",... right? and get out of the market (stock) and stay out.

Then along comes this new message today, to wait for a -40% drop and buy on the low,

But if you know anything about FABER, then you know he has said "Only a liar or a fool can call highs and lows"

*
Somebody is picking and choosing FABER headlines and quotes ... and just running the normal bullshit.

Read Fabers book "tomorrows gold", and be done with it, .. its timeless information.

All stock market paper is worthless, but I concur, if TOYOTA should drop -80% and your young buy some,... that would be FABER/ROGERS advice for real.

Thu, 02/06/2014 - 07:09 | 4407202 negative rates
negative rates's picture

That's why it's called, Crapitalism.

Wed, 02/05/2014 - 22:08 | 4406534 Dr. Engali
Dr. Engali's picture

Speaking of S&P 666 here's an interesting factoid:

Debt Up $6.666 Trillion Under Obama

http://cnsnews.com/news/article/ali-meyer/debt-6666-trillion-under-obama

Wed, 02/05/2014 - 22:16 | 4406556 Osmium
Osmium's picture

Only for a moment.  Then it will be 6.667, 6.668, etc.

Wed, 02/05/2014 - 22:22 | 4406574 Nid
Nid's picture

"Stocks find a floor" in the caption??? Fucking CNBC, shilling to the bitter end. 

Thu, 02/06/2014 - 02:15 | 4407012 philipat
philipat's picture

Is there an echo in here today? See my earlier post making exactly the same point. No aorrense taken.

Wed, 02/05/2014 - 22:34 | 4406603 soopy
soopy's picture

zzzzzzzzzzzzzzzzzzzzzzzz confirmation bias much?

Wed, 02/05/2014 - 22:38 | 4406621 spinone
spinone's picture

I disagree.  40% drop is not enough.  Things have to get so bad that people are repulsed by stocks.  They have to get so bad that most people over 40 will never even consider owning stocks ever again in their life.  The very thought of buyng stocks has to make them sick.  There have to be as many people who now own thousands of dollars in physical gold who hold stocks, it has to be that rare.

Then it might be time to buy stocks as an investment.

 

Wed, 02/05/2014 - 22:53 | 4406667 Never One Roach
Never One Roach's picture
"US Stocks and Houses Need To Drop 40% To Become Attractive"

 

Fixed it.

Wed, 02/05/2014 - 23:00 | 4406685 laosuwan
laosuwan's picture

I'm hoping for the market to drop 40 percent so stocks will again become—from a value point of view—attractive."

 

40% is way low. By my calculation at least 60% decline would be needed before stocks become attractive on a value basis, not risk adjusted basis. That would be at east a 70% decline.

Wed, 02/05/2014 - 23:17 | 4406737 jay35
jay35's picture

Same with housing prices. 20-30% drop before those become attractive again, too.

Wed, 02/05/2014 - 23:42 | 4406782 dark pools of soros
dark pools of soros's picture

he was saying this back when stocks WERE 40% lower!!!   Missed the boat!!

Wed, 02/05/2014 - 23:50 | 4406793 Elliptico
Elliptico's picture

Faber also says same about Yellen dropping her drawers.

Thu, 02/06/2014 - 00:15 | 4406837 syntaxterror
syntaxterror's picture

 

 

USA Today business cover story is titled:

"Maybe it's time to buy the dip."

 

BTFD!!!

Thu, 02/06/2014 - 00:24 | 4406856 SheepDog-One
SheepDog-One's picture

With leverage!

 

Thu, 02/06/2014 - 07:44 | 4407219 Moe Howard
Moe Howard's picture

In Au & Ag! No dip in Pb!

Thu, 02/06/2014 - 17:49 | 4409229 MeelionDollerBogus
MeelionDollerBogus's picture

all aboard the Muppet Express!

Thu, 02/06/2014 - 00:21 | 4406849 FieldingMellish
FieldingMellish's picture

ZH loses credibility when they keep regurgitating Faber. Bring some original thinking.

Thu, 02/06/2014 - 00:36 | 4406885 ebworthen
ebworthen's picture

What, you want Joe LaBologna or Icahn?

Thu, 02/06/2014 - 00:38 | 4406888 Music101
Music101's picture

What can you say... we're long overdue. It's a WORLD OF DEBT!!! See Video Below:

http://www.youtube.com/watch?v=99xsqxzJnXs

 

Thu, 02/06/2014 - 00:44 | 4406902 Gmpx
Gmpx's picture

I would not buy the stock even if it goes to zero. The paper is not soft enough and printing ink can cause irritation.

Thu, 02/06/2014 - 00:53 | 4406919 hamstercheese
hamstercheese's picture

What happens in the bathroom....stays in the bathroom.

Thu, 02/06/2014 - 01:27 | 4406969 pupdog1
pupdog1's picture

Enough of Uncle Fester.

Thu, 02/06/2014 - 01:57 | 4406998 Downtoolong
Downtoolong's picture

Faber adds, you won't hear this view from someone who is fully invested.

That is a big part of the problem, isn’t it. None of the popular, chosen, ordained, designated, and highly paid authorities and representatives who are supposedly in the know are willing to tell you what you really need to know until the day they no longer fall into those categories, and therefore no longer count anyway.

I’m ready, i.e., got land, energy, food, gold, and protection. The rest of what I own is just for fun and games.

 

Thu, 02/06/2014 - 02:36 | 4407033 Spungo
Spungo's picture

"just yesterday on ZH "FABER was telling us to BUY T-bills",... right?"

That's generally what you do when the market is ready to crash. You sell all of your stocks and buy bonds. This is not a new idea. In fact, people are already doing this. The 10 year was above 3% a couple weeks ago. Now it's going down as stocks are selling off. People are doing exactly what Faber is saying you should do. After it crashes, you dump your bonds and buy stocks.

Thu, 02/06/2014 - 02:41 | 4407034 One of We
One of We's picture

Are there any other 0.0001% bald headed mofo's who want to tell us what we already know? Good God! 

It would edify the ZH audience to hear what an under 40/english speaking/non-banker/non-pol with a real job has to say about the atractiveness of the current market conditions....

Thu, 02/06/2014 - 07:46 | 4407221 Moe Howard
Moe Howard's picture

But that slacker you describe won't have a clue.

Thu, 02/06/2014 - 02:53 | 4407044 css1971
css1971's picture

A quick 3 year drop to 450 on the S&P followed by another 10 years of going nowhere.

Thu, 02/06/2014 - 04:03 | 4407107 bentaxle
bentaxle's picture

Sure a 40% "correction" may be valid whilst The Fed and Yellen are fart-arsing around like they do at the moment. But in a bidless market a 40% drop still wouldn't be enough! http://www.zerohedge.com/news/2014-02-05/federal-reserves-nuclear-option...

Thu, 02/06/2014 - 04:05 | 4407109 TheCosmicTaco
TheCosmicTaco's picture

Some stocks will drop by 70, 80, 90%. Some will drop by 10, 20, 30%. Some will drop and then recover. Some will go up. That is the nature of stocks. They are all different.

 

Wisdom, grasshopper.

Thu, 02/06/2014 - 04:21 | 4407119 satoshi911
satoshi911's picture

Have you ever considered selling a newsletter like Faber for $1k/year?

Thu, 02/06/2014 - 04:13 | 4407116 zebrasquid
zebrasquid's picture

Faber, who I used to subscribe to, went all celebrity a few years back.
Hard to be right all the time, easier to be on tv saying nothing worthwhile.
I called him on it and he didn't seem to care much, and was defensive (though gracious) so I gave up on him and his service.

At his age, it must fun to be wined and dined and revered all over the world. Would make you kind of fat and happy, too.
Have fun, Marc.

Thu, 02/06/2014 - 04:33 | 4407125 Iam Yue2
Iam Yue2's picture

Faber would need a face transplant to become attractive; does not mean it is going to happen.

Plenty of signs we are due a big bounce; HYG; robust ISM services: some EM currencies bottoming out; extreme pessisim on VIX; etc. Don't miss the boat.

Thu, 02/06/2014 - 05:50 | 4407151 falak pema
falak pema's picture

That sounds like a remark about somebody's wife : Lose 40 pounds and you'll look like a woman. 

Oups,my apologies to Boris he said it before I did! 

Sorry, I didn't scroll ! 

Thu, 02/06/2014 - 06:14 | 4407154 TheRideNeverEnds
TheRideNeverEnds's picture

They will surely drop at least 40%...  but not until after they close 2014 above 2500.  

 

I'm thinking they will probably correct a bit from the 5000 level some time in 2015 on Yellens announcement that QE is over because they have bought the last bonds in the free world.  

 

The bottom is in, this crappy pullback was a joke and after this week we will never again trade below 1750; by the end of the month if not the end of next week we will be making new highs again.

 

generational lows, new paradigm and all that.

Thu, 02/06/2014 - 06:18 | 4407166 satoshi911
satoshi911's picture

I agree FIAT-to-the-MOON hasn't even begun,

For a long time ZH talked about $50k GOLD,

 

How about 5000 S&P why not, the USA will pull its one trick pony, e..g INFINITE FED-FIAT as long as this trick can be played.

Why not?

If you knew you were going down, if you knew say your ponzi was going to be called in 2016, and you could print paper money for free and get oil, food, and gold; would you not print to the moon while you could?

FUCK YES

The S&P will sky-rocket, ... and the world will INVEST, and then POOF the ZIONISTS capture world wealth, and they all BEG for a solution and IMF/NSA/MOSSAD give the world on a silver plate IMF-SDR.

Enjoy the ride folks

Thu, 02/06/2014 - 06:21 | 4407167 satoshi911
satoshi911's picture

Faber CANNOT tell the truth, cuz if he did he would never be brought back to MSM USA TV.

He's addicted to this gig,

 Can you imagine FABER saying ...

"THe FED will print to infinite and everybody on the planet Israel, RUSSIA, CHINA, EUROPE, and UNCLE-SAM" will get trillions ... and the S&P will sky-rocket"

 

If he said that folks would call him CRAZY, like a fox. NADA going to happen, nobody on MSM is going to tell the truth, except in the toilet room.

Thu, 02/06/2014 - 06:44 | 4407181 bdub2
bdub2's picture

A lot of $ to be made in the 'doom' market. Peak oil, market collapse, prep this, eat that. Much like how money flows to where it's treated best; bs flows to where suckers rest. The whole 'Doom Market' has been one hell of a golden ticket to those who sold it early and often.

Thu, 02/06/2014 - 06:48 | 4407184 BerCrank Call
BerCrank Call's picture

Faber needs to get back on message: QE is a big success for the banks. The only way the rest of us benefit is that teh TBTF stay TBTF. Well, they haven't failed. Ergo, QE works just fine. 

So enough with the whinging about the poor and "middle classes". Unemployment? All that nonsense about the unemployment rate was only ever designed to be window dressing on the indefinite extension of a program that once swallowed by the sheeple has been to good to be true, and too beneficial to stop. Once they realised they needed to clean up, the lies about what QE is really for have been endless. Forward guidance my ass: the writing on the wall is there without any forward guidance.

So STFU about how QE has failed. I don't see AIG's former head crying tears about AIG's failure from his Croatian coastal palace. Jaimie Dimon seems just fine. Whatever happens next, QE worked for him. And for Blankfein, et al, ad nauseum.

 

Thu, 02/06/2014 - 07:20 | 4407207 22winmag
22winmag's picture

Shit... oil needs to drop 40% to become attractive.

 

Unfortunately, printing presses can't print oil. Rather, they would grind to a halt without it.

Thu, 02/06/2014 - 07:47 | 4407222 Moe Howard
Moe Howard's picture

Good thing I got in 40% ago.

Thu, 02/06/2014 - 08:57 | 4407314 icanhasbailout
icanhasbailout's picture

folks, Maria Bartilomo needs to drop 40% to be attractive.

 

US stocks need to drop a lot more than that.

Thu, 02/06/2014 - 12:06 | 4407885 Spungo
Spungo's picture

"Hard to be right all the time, easier to be on tv saying nothing worthwhile."

I think I know what you mean. I'm a huge fan of Porter Stansberry's podcast because he speaks his mind and he has a lot of good insights. I subscribed to the $10 newsletter to support the show, and the emails I get are infuriating. If I didn't hear the podcast first, I would swear Stansberry was a scam. The emails are the exact opposite of the podcast. They'll have things like "this one trick to double your money" or "this secret to getting rich." I'll keep paying the $10 because I like the podcast, but good lord are these emails horrible.

Do NOT follow this link or you will be banned from the site!