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Faber called for a pullback after recent run-ups in the Indices. Are we in the midst of that?
Well, the classic head-and-shoulders pattern was observed while the 50 day ma intersected the compression band of the 200 day ma divided by the future-adjusted price of gold multiplied by the cost per gallon of unleaded gasoline. Also what goeth upeth usually also goeth downeth. Hope that helps... I'd have to say a definite "maybe".
Faber predicted more April/May in a recent Bloomberg interview (and that was both an excellent and lengthy interview with him a couple of weeks ago), but I'd say it's entirely possible. I think there is a point with oil over $100 where that starts to catch up with things. Still, Faber still holds the opinion that equities will fare better in the environment he views than fixed income.
From a year or so ago (although his view still seems the same): "Look at the history, for example, of Germany, for the last 100 years. They had World War I. They had the hyper-inflation in World War II. The bond-holders got wiped out three times. If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something. You were not wiped out. I think that in equities you will be better off because you have an ownership in a company, than by being the lenders to companies, and the lenders, especially, to governments"
Edited to add: found the Faber interview in question. Worth viewing and, as with Faber, always a few good laughs. He also discusses Facebook (online gambling would help it) and has some interesting notes about global real estate and his view on expected returns for equities over longer terms.
I know that this site is devoted to mutual funds, but a month ago I recommended a stock named National Oilwell Varco (NOV). This company has a virtual monopoly on supplying all kinds of drilling equipment to the oil industry and it's up 27.79% since I started buying shares on 12/29/11 (+ 3.08 % today). Halliburton (HAL) looks set for a nice run. I doubt that Iran's going to start playing nice as they kicked out the IAEA inspectors today, therefore the potential for an oil shock is there.
AMLP is an etf which people might want to consider. I haven't bought it, but will look into it more. And so it goes...
Comments
From a year or so ago (although his view still seems the same): "Look at the history, for example, of Germany, for the last 100 years. They had World War I. They had the hyper-inflation in World War II. The bond-holders got wiped out three times. If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something. You were not wiped out. I think that in equities you will be better off because you have an ownership in a company, than by being the lenders to companies, and the lenders, especially, to governments"
http://www.zerohedge.com/article/marc-faber-i-think-we-are-all-doomed
Edited to add: found the Faber interview in question. Worth viewing and, as with Faber, always a few good laughs. He also discusses Facebook (online gambling would help it) and has some interesting notes about global real estate and his view on expected returns for equities over longer terms.
I know that this site is devoted to mutual funds, but a month ago I recommended a stock named National Oilwell Varco (NOV). This company has a virtual monopoly on supplying all kinds of drilling equipment to the oil industry and it's up 27.79% since I started buying shares on 12/29/11 (+ 3.08 % today). Halliburton (HAL) looks set for a nice run. I doubt that Iran's going to start playing nice as they kicked out the IAEA inspectors today, therefore the potential for an oil shock is there.
AMLP is an etf which people might want to consider. I haven't bought it, but will look into it more. And so it goes...