Monday, June 3, 2013

Faber June 2013 Gloom Boom Doom report / Market commentary

Around the world, bond yields have been rising. What this increase in yields means is that the tailwind from declining interest rates, which benefited equities in recent years, has disappeared. Rising bond yields combined with a serious deterioration in numerous technical indicators lead me to believe that stock market around the world have far more downside risk than what is being perceived by the currently ebullient crowd of investors.