Today Faber has the following observations (and others):
- Earlier this year Faber called for a 1987-style crash. Today he says that this has come true in many emerging markets.
- Faber observes that homebuilders have sold off 30% in the U.S., which draws into question the American housing recovery.
- We are swimming in an ocean of liquidity and the money has been flowing out of emerging markets quickly.
- The American market has risen non-stop from March 2009, and that rally is old.
- Interest rates are no longer a tailwind; they are a headwind as they have risen despite the efforts of Bernanke.