Marc Faber, publisher of The Gloom, Boom & Doom Report, explains why he believes that a crash could take place in the second half of the year. Here is a direct video link.
The excessive optimism in equity participants today is reflected in their record leverage use charted below–now higher than either of the previous market peaks in 2000 or 2007.
And with the US Fed also levered 50 to 1 today thanks to 5 years of relentless QE, a “lender of last resort” for the cascade of coming margin calls is no where in sight.
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