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I guess Wall St. (Dow Jones) is on the edge of a record high at 14,000 points...
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Better Enjoy the Market Rally While You Can
Investor "euphoria" is taking stocks higher but eventually will be their undoing, market bear Marc Faber told CNBC.
January, 30 2013
The author of the widely followed Gloom Boom & Doom Reportsaid the current rally, which has seen the Standard & Poor's 500 gain more than 5 percent in 2013 and 12 percent since its November 2012 low, is getting tired and will run out of steam soon.
"We are very overbought, but it is also possible that we have a mild correction in February and then a further increase in stock prices," Faber said on "Closing Bell."
Widely known for his dour outlook on stocks and the global economy, Faber occasionally has advocated for the U.S. stock market.
Now, though, he is unwinding his long positions.
"I am selling shares at the present time. I am reducing positions because there is euphoria building up," Faber said.
Indeed, there are some signs that investors have amped up their bullishness.
Money flows to mutual funds that track stocks have soared to record levels of $55 billion in January, and sentiment surveys are showing a strong positive bias for equities. (Read More: Are Mutual Fund Investors Really 'Dumb Money'?)
"There is a chance that corporate profits will disappoint in 2013. But, by the way, there could also be some geopolitical problems, he said. Faber said he recently returned from a trip the Middle East and it "is a boiling pot."
Faber continues to utilize gold as a large part of the portfolio and he does like mining stocks. He also advocated for foreign stocks, particularly the markets in the Ukraine, Vietnam and China.
Closer to home he likes miners but believes housing shares have rallied too much and are "ahead of the fundamentals."
"I buy gold because I'm fearful that we will still have a systemic crisis, that we will have wars and so forth," he said.
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The FTSE hit a 5 year high this week ... on news that Uk govt austerity measures were not working.
Its either counter intuitive or just total BS .
or just to complicated for a peasant like me .fuck your fucking framingComment
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Even a broken clock is right twice a day. It's called an economic "cycle" meaning that the market fluctuates from Bull to Bear...Marc Faber (born February 28, 1946) is a Swiss investor. Faber is publisher of the Gloom Boom & Doom Report
newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.[1][2][3] Faber also serves as director or advisor of a number of investment funds that focus on emerging and frontier markets, including Leopard Capital’s Leopard Cambodia Fund and Leopard Sri Lanka Fund.[4]
Faber has a reputation for being a contrarian investor and has been called "Doctor Doom" for a number of years. He was the subject of a book written by Nury Vittachi in 1998 entitled Doctor Doom - Riding the Millennial Storm - Marc Faber's Path to Profit in the Financial Crisis.[5][6] Faber has become a frequent speaker in various forums and makes numerous appearances on television around the world including various CNBC and Bloomberg outlets, as well as on internet venues like Jim Puplava's internet radio show.[7] Faber has also engaged the Barron's Roundtable[8] and the Manhattan Mises Circle.[9]
http://en.wikipedia.org/wiki/Marc_Faber
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Yeah, but without Obomba the savior in office, the Dow would never have reached even 10,000 points...
Just ask Dickforbreath...Comment
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Obama's Economy
GDP Shows Surprise Drop for U.S. in Fourth Quarter
AP
The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.
The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.
The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That's a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.
The surprise contraction could raise fears about the economy's ability to handle tax increases that took effect in January and looming spending cuts.
Still, the weakness may be because of one-time factors. Government spending cuts and slower inventory growth subtracted a total of 2.6 percentage points from growth.
And those volatile categories offset faster growth in consumer spending, business investment and housing -- the economy's core drivers of growth.
Another positive aspect of the report: For all of 2012, the economy expanded 2.2 percent, better than 2011's growth of 1.8 percent.
The economy may stay weak at the start of the year because Americans are coming to grips with an increase in Social Security taxes that has left them with less take-home pay.
Subpar growth has held back hiring. The economy has created about 150,000 jobs a month, on average, for the past two years. That's barely enough to reduce the unemployment rate, which has been 7.8 percent for the past two months.
Economists forecast that unemployment stayed at the still-high rate again this month. The government releases the January jobs report Friday.
The slower growth in stockpiles comes after a big jump in the third quarter. Companies frequently cut back on inventories if they anticipate a slowdown in sales. Slower inventory growth means factories likely produced less.
Heavy equipment maker Caterpillar, Inc. said this week that it reduced its inventories by $2 billion in the fourth quarter as global sales declined from a year earlier.
The biggest question going forward is how consumers react to the expiration of a Social Security tax cut. Congress and the White House allowed the temporary tax cut to expire in January, but reached a deal to keep income taxes from rising on most Americans.
The tax increase will lower take home pay this year by about 2 percent. That means a household earning $50,000 a year will have about $1,000 less to spend. A household with two high-paid workers will have up to $4,500 less.
Already, a key measure of consumer confidence plummeted this month after Americans noticed the reduction in their paychecks, the Conference Board reported Tuesday.
Economists expected the first reading on gross domestic product to show growth of 1 percent, down from the third quarter's reading of 3.1 percent.
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Of course the stock market is going to do well when the central banks are printing shit loads of money. That money goes into the stock market through big investment banks. The average person never sees the money. They just see higher taxes, the money they make buying less, and of course less jobs and a loss of employer benefits as employers replace full time employees with temps to cut their cost due to the new healthcare regulations coming into effect.
If you think this is the kind of market you buy some shares and then sit on them long-term you are mistaken. It's rigged and the gains are short-term.No! You can't have the keys to the wine cellar!Comment
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GDP Shows Surprise Drop for U.S. in Fourth Quarter
AP
The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.
The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.
The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That's a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.
The surprise contraction could raise fears about the economy's ability to handle tax increases that took effect in January and looming spending cuts.
Still, the weakness may be because of one-time factors. Government spending cuts and slower inventory growth subtracted a total of 2.6 percentage points from growth.
And those volatile categories offset faster growth in consumer spending, business investment and housing -- the economy's core drivers of growth.
Another positive aspect of the report: For all of 2012, the economy expanded 2.2 percent, better than 2011's growth of 1.8 percent.
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So El-shithead, you focus solely on the negative belying that this is actually a pretty positive report because much of the "shrinking" was due to BUDGET CUTS FOR THE MILITARY!!!
Fuckstick!Comment
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You're trying to show "Obama's Economy" in a positive light using wall Street as an example, fuckstickforbrains...Comment
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Nick, you don't honestly think this economy is good, do you?? I've never seen so many people on street corners begging for food. It's getting to point where certain areas are starting to pass laws banning panhandling because it's interfering with traffic.Comment
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There's an old cartoon that was showing what would happen if the Federal Reserve Act passed. It shows a big octopus grabbing all the branches of government, private homes and businesses, and industry. The head of the octopus is the central bank and it's puking money out of it's mouth into Wall Street. The cartoon is over 100 years old and pretty much shows the situation now.No! You can't have the keys to the wine cellar!Comment
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That's a bunch of bullish shit...
Factory orders for what, toilet paper ??
In order for our economy to just break even, 250,000 jobs per month need to be created...
Obomba's best month has been in the 150,000 range...
We're still going down hill, just not as fast...
But it's gonna be picking back up with QE forever inflating the economy with 45 Billion dollars printed out of thin air every month...
Obomba's economy is tanking...
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