Publisher of the Gloom Boom & Doom Report Marc Faber spoke with FOX Business Network’s (FBN) Neil Cavuto about the realistic possibility of the market collapsing before November saying “Most people haven’t really made any money over the last 12 months or even two years because the market is down over the last 12 months.” He continued saying “the economy is stuck,”and “That’s why you have people like Trump and Bernie Sanders having such an appeal. Otherwise if the economy was very strong, they wouldn’t essentially be contenders for the presidential election.”
Marc Faber – On the impact the economy has had on the presidential election:
“Most people haven’t really made any money over the last 12 months or even two years because the market is down over last 12 months. The typical stock is down significantly. So they’ve actually diminished their activity in stocks. The economy is stuck. Manufacturing is no longer growing, and the service sector and employment is growing, but not with great paying jobs. And so the typical family is actually not doing well. And that’s why you have people like Trump and Bernie Sanders having such an appeal. Otherwise if the economy was very strong, they wouldn’t essentially be contenders for the presidential election.”
On the Fed announcing that there was a likelihood they would increase rates in June:
“I think from the Fed’s perspective this was actually a smart move. Because then they could watch the market reaction. As the market didn’t sell off meaningfully, the Fed may move. I don’t think they will move, because within a month’s time even they – who seem to be the one-eyed leading the blind – I think they grossly overestimate the strength of the U.S. economy.”
On the risk of building a bigger bubble:
“We have already a gigantic bubble. That should be clear. If they increase rates, we will see what happens. My suspicion is that markets can also go down without rate increase. In Japan there haven’t been any rate increases for ages and rates came down, the markets came down. Liquidity can tighten, even with ultra-low interest rates as Milton Friedman observed.”
Marc Faber – On Hillary Clinton becoming president:
“The worst fear I have is that Mrs. Hillary Clinton will become president. That is my worst fear. I would vote for anyone in the world, including you [Neil Cavuto] and Trump before I would choose Hillary Clinton. She’s dishonest, she’s a liar and she has deceived people and is a very questionable character. And this has been all documented. I think the markets would sell off 100% if Hillary Clinton becomes president of the U.S. I don’t think that Mr. Trump is the most desirable future president of the U.S., but none of the other candidates were. Actually, I like Bernie Sanders.”
