We had a tremendous rally for the March lows to around June 15 and after that equity markets have continued to go up but at much lower rates. In other words, between March and June 15 in the United States we went up 43% and since then we are up 7%. The rate of increase has diminished. At the same time, the US Dollar which was very weak between the end of February and June of this year has traded in a very narow range against the euro. Sine June we are flat against the euro despite of the fact that there has been lots of negative comments against the US Dollar.
Now, we have extreme optimism among investors and economists about the outlook for the economy and the stock market and extreme pessimism about the US Dollar. And therefore its possible that in the next 2 weeks or 3 months its possible that equities will disappoint.
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.
