Predictions: Marc Faber, Jeremy Grantham & Harry Dent

By on July 9, 2008

Marc Faber on China, (Ref: FXI, 125.64, 7/3):

Investors betting on a rebound in China’s tumbling stocks are setting themselves up for more losses, according to Marc Faber. “I just wouldn’t buy,” Faber said in an interview from Bangkok July 4. “When a bubble bursts, you only hit bottom when people totally give up and vow they’ll never buy stocks again. People are still more worried they’ll miss the next rally.” Article: http://www.bloomberg.com/apps/news?pid=20601080&sid=aiSJ.9h2BiCY&refer=asia

Jeremy Grantham on High-Quality Stocks and Japan:

Jeremy Grantham says he is surprised that high-quality stocks have not been spared from the recent meltdown. In a rational market, these companies would be trading at much bigger premium to everything else. For those who are interested, Grantham also thinks the Japanese stock market is “less expensive than most other countries,” – which, for him, is high praise.
Article: http://online.wsj.com/article/SB121553824106336257.html?mod=googlenews_wsj

Harry Dent on the next couple of years:

Harry Dent suggests investors keep an eye on markets near the end of 2009 and into 2010. The U.S. economy will be in recession between June and October of this year, which will take the pressure off commodity prices and those will fall throughout the second half of 2008. The pullback in commodity prices will lead to one big final stock market rally next year and the year after that will power the Dow to a new all-time record high sometime in 2009 or early 2010. But after that, the fat lady begins singing like she never has. Oil supply will still be tight and oil prices will rebound back up above US$150, and that’s the end of the old order. “In late 2009 or late 2010, runaway commodity markets collide with the broad peaking of the baby boom spending wave, and that’s going to create a massive crash,” says Dent. “After 2010, the extra support the boomers delivered is going to progressively fall out of the economy, and that’s going to be the final nail in the coffin on the post-war expansion of U.S. debt.” Article: http://www.canadianbusiness.com/columnists/jeff_sanford/article.jsp?content=20080707_155039_12064

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