“When I look at asset prices; real estate, bonds, equities, vintage cars… I think that gold is actually one of the few assets that is relatively cheap, relatively inexpensive.”
Marc Faber, author of the Gloom, Boom, and Doom Report, and a Director of Sprott Inc. shared his most recent views during a recent visit to our offices… In particular, he’s seeing cracks in the broad stock market become apparent:
We had a bear market that ended March 6th, 2009, at S&P 666. We are now over 1,800 -- up almost three times.
We had extremely optimistic sentiment just before Christmas. We had very heavy insider selling, with high valuations, and extremely high corporate profits by historical standards.
Over the last two years, most equity markets around the world, in emerging markets, have been down or moving sideways. They’re no longer following U.S. stocks up, and in the U.S., an increasing number of shares are breaking down.
In a month’s time, the bull market will be five years old. This is the second longest bull market in the last 100 years. These are all signs of a top, so I wouldn’t buy shares here. I’m not interested.
Can the market go up another 20 percent?
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In September 2011 the Gold Bugs index, the HUI stood at 630 as gold prices peaked, since then both have trended lower with the HUI losing about 65% of its value. The bottom has been called a number of times and after such a dramatic decline its difficult not to think that we are there now. However, as we all know the timing of any investment is crucial to its success and that is exactly what we are trying to do here, trying to pick advantageous entry and exit points. If you would like to know which stocks we are buying and selling please join us at ‘Stock Trader’ our premium investment service.
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