Marc Faber on Friday’s sell-off
Mark Faber in a Bloomberg video today, says that the Friday market sell-off was not over done, but was merely a delayed reaction to the fact that the U.S. economy is already in a recession. The rally since mid March has been baptized a “Sucker Rally”. I agree with Mark that equities are over valued (both from a technical point and a fundamental point ).
Also, recently, Relative Strength for stocks over bonds, measured by S&P 500 and Dow Jones Corporate Bond Index, have turned south for stocks, signaling weakness ahead.
