Marc Faber: Markets Are Out Of Touch With Reality.

My favorite bear, Marc Faber, brings out a number of important issues in the video below. I agree with all of them as they tend to match my fundamental analysis. Here is a quick summary of what he says.

  • Too much risk in the financial system. Excessive speculation.
  • Valuation are crazy.
  • Market internals are deteriorating.
  • Many stocks are already down 10-20%. Some momentum high flyers are already down 30-50%.
  • General asset deflation is coming.

Z30