In this partial transcript of Dr. Marc Faber's interview airing Friday, he discusses why central banks should be manipulating the price of gold higher, whether massive retail buying signifies a bottom, the real state of China's economy, and much more.
One of the reasons that it is been so hard for a lot of analysts, even trained economists, to understand the imbalances that were at the root of the current crisis is that we too easily confuse national savings with household savings.
The overnight weak economic news out of China adds to the market uncertainty created by Fed related developments from Wednesday. Hard to tell at this stage whether the global market turmoil is a justified response to what we learnt on Wednesday or the typical over-reaction.
Existing home sales for April came in at 4.97 million from an upwardly revised March reading of 4.94 million (originally 4.92 million.) However, the question remains that with rising home prices, and tightening supply, when do potential buyers get priced out of home ownership?
Investors rely on indices to help understand how a market is moving, and perhaps even how it might move in the future. Technical analysis of a market, for example, is only possible due to market indices. How else would we assess what might be happening in a market? If an index is not properly constructed, that whole effort may prove fruitless.
In this report, I consider the goals and methods of foreign exchange intervention and place today’s policies in their historical context. Also, I examine the evidence of where covert intervention—quite common historically—might possibly be taking place: Perhaps where you would least expect it.
Perhaps THE biggest event so far this week was the breakout in 10-Yr UST yields today north of 2%. As shown below, the 10-Yr UST broke the bearish trend that has been in place since 2011.
The S&P 500 was down 0.83% today and the Dow was lower by 0.52%. From peak-to-trough today the S&P 500 was down 2.3% in today’s trading. Fed Chairman Bernanke’s comments about the possibility of tapering stimulus in the “next few meetings” moved investors to take profits today after an early spike to new highs this morning.
With the Yen collapsing vs. all other currencies, inquiring minds may be wondering how prime minister Shinzo Abe's inflation policy is working out in practice. Let's start with a look at the Yen.