Marc Faber – This Will Be The Big Surprise For Investors In 2017
KingWorldNews.com
January 05, 2017
After a rowdy start to the trading year, today legend Marc Faber spoke with King World News about what the big surprise for investors will be in 2017.
Eric King: “Marc, what do you think may surprise investors around the world in 2017? Something they just don’t see coming.”
Marc Faber: “To make a forecast for a whole year is very difficult, but I would like to say that for the next three months I think we will have a rebound in bond prices because the economy has actually been weakening…
Marc Faber continues: “Car sales have been weakening, housing has been slowing down, the debt levels are extremely high, and short-term interest rates are going up, so it’s hurting some sectors of the market which are interest rate dependent. And I think the economy by and large will disappoint in the next three months, and therefore one of the predictions and positions I have is to be long Treasury bonds.
But I think the surprise for many investors is that the stock market will go down. I would say a bear market is overdue and a recession is overdue.
The one thing that we need to consider, which is important for, say, precious metals investors, is the following: Let’s say the Fed realizes that the deficits for the U.S. go up and that interest rates increase and that the economy slows down, do you really think that they will increase the Fed funds rate three times in 2017? Never. What they will aim at then, is to essentially bring interest rates down, especially if by then the dollar is still strong. And so they will probably launch QE4 in 2017. I think that will be a surprise for many people — not for me, but for many people that will be a surprise.
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