Tyler Durden: “There is a colossal bubble in all asset prices and eventually it will burst,” is the subtle recurring message from The Gloom, Boom, & Doom Report’s Marc Faber, warnings that “maybe has begun to burst already.”
While Faber admits he has called for such a correction previously, he notes that the difference now is that “valuations are so much higher; and contrary to what the mainstream economists believe, I don’t believe the global economy is strengthening; in fact I believe it is weakening.”
Furthermore, while “you never know what will trigger for a bull market or bear market is until after the fact,” Faber offers 3 factors (aside from the Fed) that could trigger a 30% crash or more… beginning with “a) In The White House we have a very poor President – which will lead to political issues domestically in the US,” which are not priced in.
“There is a colossal bubble in all asset prices and eventually it will burst.. and maybe has begun to burst already”
“We are not going to have a ‘correction’; but we are going to have a bear market”
“You never know what will trigger a bull market or what will trigger a bear market – you only know it after the fact”
“When markets peak out, nobody can believe that it could go down and we have an environment where everybody puts their faith in central banks printing money – and therefore asset prices cannot go down”