Some good reminders in this segment re the bear market that is already underway in many markets and assets in the world…confirmation of recession in the official data always lags leading indicators. Proactive risk management that gets ahead of the cycle is critical. Also it’s important to understand that the downturn now unfolding in asset markets has been earned by an epic period of falling interest rates, ballooning debt levels and rising corporate profits from 1982 to 2015. It also purchased for the world the present period of secular stagnation and treacherous market conditions: specifically falling asset prices, declining debt levels, and thereafter, higher and rising yields as corporate risk is repriced back to realistic levels once more.
Marc Faber, investor and author of the “Gloom, Boom & Doom Report,” talks with Francine Lacqua about his call that the Federal Reserve has launched a U.S. recession, the investment opportunity in 10-Year and 30-Year U.S. Treasuries, troubles in the Chinese economy, and his preference for emerging markets. Here is a direct video link.