Latest Marc Faber`s video interview.
Video interview transcript
A correction is not nothing unusual at this phase of the cycle. I would also like to add that although the global economy has kind of stabilized we are not out of the woods and valuations have become somewhat stretched.
In other words, stocks didn`t go up necessarily because of improving fundamentals but they went up because of huge liquidity injections and large stimulus packages by all governments in the world.
And the problem with fiscal and monetary stimulus is that as you increase the fiscal deficits and money supply grows it has an immediate impact on asset markets. However, in order to continue to drive asset markets higher in a second period, the fiscal deficits should continue to increase and money supply should continue to increase at an accelerated rate. In the moment there is a slowdown in that growth rate, or even if the growth rate remains constant the stimulative impact diminishes and then liquidity tightens, relatively speaking.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
