In an interview with Zee Business, Marc Faber outlines the reasons why markets are facing some headwinds but is unclear on whether it means the bull market since 2009 has ended.
In US, a bull market started essentially nine years ago in March 2009. We are up close to 4 times since then, and in the last two years we never had a correction of more than 5 percent. After these conditions, it is not unlikely that the market will face some tough time. Market may decline by 40 per cent. I'm not saying it will happen. I say it could happen.
In 1987, we have had a 40% correction, followed by recession, then market continued to go up until 2000. My sense is we had a nirvana condition for financial assets over the last 8-9 years. Bonds, stocks and practically every sector has rallied. Dollar was firm. All these conditions will change. It will be more challenging for investors.
via www.zeebiz.com/india/news-rbi-deserves-positive-marks-for-keeping-rupee-stable-marc-faber-36578
