Marc Faber's October Outlook: Forget EU Debt Crisis, A China Meltdown Is The Real Threat

by Nathaniel Crawford

Marc Faber is out with the latest issue of his famous Gloom, Boom and Doom Report, which is always a must read for serious investors. Unlike most of the other talking heads, Faber has an excellent track record. He correctly predicted the top in the equity markets in Nov. 2007, and caught the bottom in March 2009, making his subscribers a lot of money. Here is a summary of his October 2011 report:

Stocks--Yes, stocks are very oversold, but that does not mean they cannot go lower. The dreadful price action in both Copper and the Shanghai Composite points to new lows for the equity markets. After US stocks make a new low below 1100 on the S&P 500 (SPY), there could be a year-end rally followed by a more meaningful decline into 2012. Investors should use any bounce in stocks as an opportunity to reduce their equity exposure. At this point, Faber advises no more than 25% of your portfolio be in stocks.

Gold--At $1900 gold was extremely overbought, and a correction was necessary. However, Faber now believes that gold could undergo a significant correction similar to what happened between 1974-1976, when gold fell 40%. Faber notes that a large decline in gold is now a distinct possibility. The first support level for gold is at the 200 DMA around $1500. Despite the potential for a pullback, Faber still likes gold and believes it will trade significantly higher.

Dollar--It's true that the dollar has no intrinsic value and is being printed into infinity, but the US dollar will be your best friend for the next few months. As global liquidity contracts on EU debt concerns and a possible hard landing in China, Faber advises investors to be long the dollar. Note this is a short-term call; longer term the dollar is going to zero.

Treasuries--Despite being bullish on the US dollar, Faber does not reccomend treasuries, noting that they are overbought and susceptible to a large correction.

China and Copper--If you think the market is falling because of incompetent EU bureaucrats you are behind the curve. According to Faber, the price of copper is signaling a very serious slowdown (if not complete collapse) in China. This is what is really behind the move down in all commodities. A hard landing in China would be devastating for the global economy. The Shanghai composite is making new lows along with copper, which is very bearish. Also stay away from the Australian and Canadian currencies. If China crashes, these markets will get massacred.

Emerging Markets--Stay away from these at all costs. All emerging markets are falling and making new lows. Even though Faber likes these longer term, they could still fall another 20%-30% before they would be good buys. These markets could even fall to their 2009 lows. However, this will represent a good buying opportunity because these markets will be the first to bottom.

Short Opportunities--There is no doubt about it; shorting in this kind of manipulated market is dangerous, but if you must, here are a few ideas: Apple (APPL), Amazon (AMZN), and Salesforce.com (CRM). Only short these with very tight stops.

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Never Forget: No Plane Hit This Building

Latest Cover-Up/Deceptions
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remember the big lie

remember remember the 11th of september
the day when three towers fell
remember remember the 11th of september
when people were buried by a spell

the bbc trot out the party line
spinning their web of deceit
pre-emptive strikes the name of the game
that dictators' lives are replete

history is written by the victor
the bbc piles lie upon lie
for those that feast on the mourning
with crocodile tears they do cry

emotives pack the theatre
'solidarity' goes out the call
for those that dance to the piper
united in lies they fall

etonites caught publishing prehistory
conspiracy a word the media hate
they have to read the iies out loud
and hope that the truth comes late

bbc reminisce over black and white
it was easier to cast their spell
chained explosives were seen in colour
and with it the lies that they tell

truth doesn't come from hermes
for some it is too much pain
but if the lies are worshipped
more people will die in vain

for media this was top billing
memorial for new york they said
in middle east on goes the killing
as they continue to pile up the dead

no comments on 9/11, quite some turning point, psyop, occult ritiual sacrifice and no comment even when people know that perpetrators return to the scene of the crime and this happened.

i can't say what techno stuff was done on the day to people around the world, eg:

http://tinyurl.com/3dgmlyv

but one of the things that puzzled me about it was that within what was presented was an implicit 'we done it'. puzzled me, as denial is the operational mode of politics. then i realised denial, blinkers, how this psyops actually works. millions of people around the world were initiated into a secret society, to join the conspiracy.

with the human sacrifice of people, rescuers and the presentation of 'we done it', there was the combination of deep trauma and because of the occult presentation of whodunnit, fear. with bush in the school classroom he was talking to the world, talking to the eyes wide opened people, talking to the child in those people, traumatising the eyes wide opened defenseless child.

the terror, fear, the child in you traumatised it encourages a mind split, to seperate you from a situation that is unbearable and outside your control (ability to help). if that split occurs, the blinkers have been installed and you have joined the conspiracy albeit unconsciously and joined the living dead.

if people wondering what it would be like to be helpless and present in an occult ritual sacrifice (trauma based mind control), likely they have been. next up stephen nolan at the bbc was inviting you to remember the dead.

eyes wide shut the movie, 9/11 an invitation to join and to be part of the conspiracy following them by denying what you already know.

stephen nolan for bbc division 5 invited you to remember the dead, actually to by occult definition; be dead. program sealing with redirection.

remember not what you were doing on that day, remember what happened to you, how you changed if you did and the tavistock tricksaurus is revealed, extended child abuse a term of relevance.

This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the Digital Millennium Copyright Act (found at the U.S. Copyright Office) and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.
About Us - Disclaimer - Privacy Policy
"Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened..." - Winston Churchill

View the original article here