Marc Faber: Japanese Stocks May Outperform

By on April 2, 2012

Marc Faber - Boom, Gloom and Doom ReportBloomberg’s Betty Liu interviewed Marc Faber, publisher of the Gloom, Boom & Doom report, regarding his market outlook.

Faber provided a synopsis of what has occurred over the past year. He said he would be very careful at this stage because expectations and optimism are very high.

Faber said earnings could begin to disappoint with corporate profit margins deteriorating.

Faber stated a QE3 by the Fed would have to be gigantic to move the markets.

Faber said it was possible stocks could continue rising, but he doubted they would appreciate at the same rate as in the first quarter.

Faber commented on the technical underpinnings of the market which he sees deteriorating with the list of new highs on the wane, short positions being way down, and the market being overbought based on the percentage of stocks trading over their 50-day and 200-day moving averages.

Faber added that April could be a strong month as it is traditionally, but sometime over the next six months stocks could be much lower.

The interview continued with Faber commenting further on how large the Fed’s quantitative easing would need to be to move markets, the reasons he believes profit margins will sink, his outlook for economic growth and inflation, where he would put his money (U.S. dollar, emerging markets, Japanese market), and his outlook for gold.

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