- Stocks may correct up to 20% or more due to the overbought position (next 3-6 months);
- Commodities will correct as well, as the stimulus has cause most assets class to inflate
MyView
US stock market has doubled since 2009, i.e. almost in 2 years. A major correction (if any) is long overdue. The stock market is also overbought, another reason for correction. On the same score, mutual fund is almost fully invested, similar prior to the 2008 crash and optimism is at its peak for stocks and commodities. So is US dollar, at its most pesimistic sentiment.
Jim Rogers in his current interview says, US dollar may rebound (next 3mths or a year) in the short and medium term as he explained, when the scale on the other side is overloaded, it will move back the opposite side, to balance off.
If both Marc Faber and Jim Rogers are right, then, a reverse in US dollar will cause the drop in most other assets classes example, stocks and commodities. Of course they are saying US dollar in a long run will become "TOILET PAPERS". In a long run, I believe, everyone dies (physically) and they are correct to say so.
They are not the best in timing the market, but their "view" should be heard, especially Jim Rogers puts his money where his mouth is.
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