"Faber believes a correction is imminent for the stock market as bullish sentiment nears record levels and mutual fund cash positions remain very low. Furthermore, the latest upward move in stocks has occurred on declining volume, which is usually bearish from a technical point of view. The correction should occur in January. That being said, you should be buying into the correction as it represents a good buying opportunity. Faber prefers energy companies and speculative stocks such as home builders and even AIG. He goes on to say that the third year of a Presidential cycle is very good for speculative stocks versus traditional blue chip value plays."
Commodities Online
my only problem with what he's saying is that it is what everyone else is saying. which can only mean two things A) the correction will be deeper and not as easily buyable as people think or B) the correction will be more of sideways action. i'm bettin on the ladder
ReplyDeleteAs a trader, I don't care which way the market moves, just so long as it moves.
ReplyDeleteRegarding Faber, isn't there both a father and a son. I might be mixing him up with someone else. Regardless, if it's the guy I'm thinking of, he has screwed a lot of people out of their money by recommending leveraged ETF's.