The power of contrarian thought is very important to making money and to avoid losing your investment. Marc Faber says why he thinks the crowd may be wrong and what could trigger a stock market meltdown.
"You don't see, and I don't see. And, nobody sees. That's why people keep buying stocks. And yet, something will happen one day. I think it may very well come from a credit event. Or, it may come from the disclosure of a major fraud. Or, it may come because interest rates start to go up although Central Banks remain on the dovish side. There are many events that can trigger a decline.
In 2009 when stocks bottomed out, I can tell you that not many people saw why stocks would go up. Now it's the opposite. The sky is clear. Corporate profits have been expanding — they're good. Interest rates are low, but valuations are very high." via CNBC
