Marc Faber: Weak Industrial Commodities Have Nothing to do with Greece

By on May 23, 2012

Marc Faber - Gloom Boom and Doom ReportMarc Faber, editor of the Gloom, Boom and Doom Report, was interviewed on Bloomberg this week. He claimed the technical picture of the market “was quite bad.” However, Faber said typically during an election year we have a rally from late May onward, along with positive seasonal trends until August.

Faber doesn’t believe we’ll see new highs in the market because the technical damage is quite considerable.

Regarding Greece, Faber would consider it a positive for the market if Greece was finally kicked out of the EU. He said they should have never been included in the EU and when they started having problems three years ago they should have been kicked out then since the damage done would have been much smaller.

Faber doesn’t believe we’ll see a new bull market from these levels, but will wait until better opportunities arise. Faber expects the market to drift for awhile then drop 20-30% from the recent high (S&P 500 @ 1422).

Faber said everyone is focusing on Greece because they can then justify their wrong forecasts on Greece, or the markets going down because of JPMorgan’s loss. The fact that industrial commodities prices have been so weak has nothing to do with Greece at all, according to Faber. He clarified that weak commodities probably have more to do with a slowdown in China, or perhaps a crash there.

Below is a more in-depth interview of Faber from earlier in the month where he argues that not only Greece, but other countries should be kicked out of the Euro. He said it wouldn’t be the disaster some claim, but would be the solution. He was also forecasting a market crash later in the year.

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