Faber speaks with forked tongue

On the 22 of September Faber said this:

"Now we have a particular situation in the US whereby interest rates are at zero and the fed has made statements whereby they will not increase interest rates much. They will keep them below the rate of inflation. In this environment the worst investment, of course, is to be in cash, in the long-run, or be, even worse in US government bonds. What you want to be is in assets, whether it be real estate, commodities or in equities. And ideally, of course, you are in foreign currencies or a currency that can not be increased in its supply, like gold, silver, platinum, palladium etc."

 ..."my view is, probably over the next 2, 3 years you are better off being in equities"

It is clear that these statements can not be misinterpreted. I can find no other way to understand the statements above than he foresees a total collapse of the dollar and explosive inflation in the long-run. While I agree, inflation will likely be a problem at some point. It is likely 4 to 6 years away. Anyone who takes the Faber trade will be broke by then, yet Faber may still try to say - "I was right". Again, I think that his views are irresponsible and dangerous.

Currently he is saying:

“I wouldn’t be surprised if we’d seen the peak of the market for this year because the economic news isn’t going to improve very much. The correction in the market has been overdue for quite some time.”

A correction is not deflation...and a pullback in Gold is not deflation. He is looking for pullbacks. And, in my opinion the stated basis for a pullback is pretty flimsy at best. I would much prefer him to state some technical reason...absense of good news does not drive prices one way or the other. If absence of bad news were to drive prices then this bear market rally would not have been possible. Faber looks pretty confused and disoriented. I can understand that, this market is not rational (and no market is), but the smarter you are the more you try to rationalize it. This is why Faber is missing the big picture...he is trying to come up with a nice rational and intellectually stimulating story or thesis. That is, by the way, a great way to be entertained...but definitely not a great way to make money.

A dollar crash and inflation fit into a very marketable story... probably you can get a lot more signups for $200 if you use that story than a huge dollar rally and epic deflation.

What we will likely get in my opinion is not a pullback, but a resumption of the trend. Just look at that real estate chart that I posted previously. We have a way's to go before we even get to wave 4. And, Faber absolutely recommends real estate assets in the above video.

Another sign of a top...Dr. Martin Weiss, Phd, Md, Esq, Jr, III

Martin Weiss, in my book, is a freak. He pushed leverage short ETF's at the bottom. His options and leap trades are 90% losers if you check the actual trades...I had to do a lot of work to find a history of his option trades. Most of his trades, in general are losers and he wants to charge you $5,000 a year for advice. (see trade history below)

Interestingly, after 27 years of promoting a deflationist view, Weiss has now converted to an inflationist. Clearly, he is responding emotionally to rising market prices and to all the angry letters from people who bought leveraged short ETF's with out any risk limits. SRS which is one he was promoting at around 100 is now 10 bucks. If you followed his advice he did not advise you when the trade was broken, nor did he advise you that these are depreciating assets. The market could go down 50% in a year and this type of security could be up only 10 to 20%. Now get this, after putting everyone through this...he now is essentially saying buy long ETF's.

His announcement is here.

If this is not another sign like Faber, Grant and others...I do not know what is. Weiss has to be the worst market timing trading advice I have ever seen and now he is wrong on the fundamental side too - right at the top...is there any better time to change your view?

Marc Faber's Historic Headline

"Buy Stocks Because US Dollars Will Be Worthless" - Marc Faber

If one of the worst market calls potentially of all time was made by Marc Faber yesterday...kindly refer back to this screenshot.

Depending on how you view it, his advice could be interpreted as irresponsible. His premise flawed and his facts dubious.

You don't get a better capitulatory indicator than this if it turns out as I expect it will!