For amusement: Years ago, whenever there was a market sell-off, my friend Tak Hallus (Stephen Robinett) would shout at his TV tuned to CNBC “Bring out the bears!”.
This was because CNBC would usually bring on the bears whenever there was a sell-off, and bulls whenever the market rallied.
Today was no exception with Marc Faber on CNBC:
“This year, for sure — maybe from a higher diving board — the S&P will drop 20 per cent,” Faber said, adding: “I think, rather, 30 per cent”
And Faber from August 8, 2013:
Faber expect to see stocks end the year “maybe 20 per cent [lower], maybe more!”
And from October 24, 2012:
“I believe globally we are faced with slowing economies and disappointing corporate profits, and I will not be surprised to see the Dow Jones, the S&P, the major indices, down from the recent highs by say, 20 per cent,” Faber said…
Since the market is up 30% since his 2012 prediction, shouldn’t he be expecting a 50% decline now?
• At 8:30 AM ET, the Producer Price Index for March from the BLS. The consensus is for a 0.1% increase in prices.
• At 9:55 AM, the Reuter’s/University of Michigan’s Consumer sentiment index (preliminary for April). The consensus is for a reading of 81.0, up from 80.0 in March.
More from Calculated Risk:
- Friday: PPI, Consumer Sentiment
- NY Times on the Smaller Budget Deficit
- “Reasons for the Decline in Prime-Age Labour Force Participation”
- Freddie Mac: “Fixed Mortgage Rates Tick Down”
- Trulia: Asking House Prices up 10.0% year-over-year in March