Major market indices have dropped 10% since the election. To my surprise, even stocks that stand to profit from Obamacare (e.g. PhRMA) have dropped. Reporters are talking about the impending "fiscal cliff," so perhaps the market is wondering whose oxen will get gored. Will it be corporate and dividend tax rates, making stocks less attractive? Will it be Obamacare subsidies? Military contractors? One thing we don't need to fear though, Bubbles Ben won't run out of paper, so he can keep buying mortgage backed securities from his cronies, "helping homeowners" by reflating the housing bubble so debtors don't default.
Faber is good at sizing up international markets and general monetary policy and so far I have not seen him predicting a sell-off, rather inflation adjusted rising of most asset classes. He is not that doomy except for the end-game when US debt will eventually blow up or there will be a bond crisis. I am not sure if I agree with a dramatic crash, but I can see some volatility and stocks heading lower which already has started as some already stated. I think though that he is absolutely right in favoring most Asian markets - except for China and Japan - over US/European markets.
doh! The article says the number of sales and the median price increased. I'm guessing hedge funds and equity funds are borrowing at low rates and buying lots of places. We'll see how that turns out for investors; it may be a hedge against inflation, but real gains would depend on household formation, future construction costs, and real wages among other things.
Plenty of money around these days. One investor steps away, another has piles of money to take that place. You can see it in the way the market seesaws, up 100 down a 100, it's the new normal. Every time a new anomaly occurs the news reports in it then the SEC or whoever says, yeah well we put a computer program into place to make sure that does not happen again, the equities market can only crash so hard on any given day, they even halt trading on individual stocks now as well.
I also think with middle classes growing up all over the world we are seeing par stability as far as retail and wholesale spending go, which helps keep everything just kind of churning along. Jobless recoveries and higher unemployment are an example of that.