Marc Faber shares with us where to put your money
The Daily Reckoning PRESENTS: It’s been a pretty bumpy year for investors…and looking forward, Marc Faber shares with us where to put your money (and what to steer clear of) in 2008. Read on…
The war between the Fed pumping money into the system and cutting the Fed fund rate to 2%, as David Rosenberg thinks, and the private sector withdrawing liquidity through huge write-offs in the financial sector, leading to shrinking balance sheets, will lead to increased volatility. Ten per cent market moves will be the order of the day. As was the case in the 1970s, we can expect the stock market to sell off by more than 20%. (Between 1968 and 1982, the stock market (S&P 500) had three major declines: 1968-1970: down 36%; 1973-1974: down 48%; 1980-1982: down 27%; and two minor declines: 1976-1978: down 19%; 1980: down 17%. At the time, the two adversaries facing each other were “easy monetary policies by the Fed” and “consumer price inflation”.
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