Marc Faber Sees US Dollar Strength and Market Correction

Marc Faber (Dr. Doom) made a macro call on CNBC last week. Faber sees US Dollar strength and a market correction in the next few months. That has been the correlation these days. Nouriel Roubini (Dr. Realist) also asks him a few questions during the segment. Faber also believes the US Government is in a bubble. Aired on August 12.

"What we have is a bull market in assets between 2002 and the end of 2007, early 2008, and a weak dollar during that time. 2008 was the opposite, a strong dollar and all asset markets went down except for bonds. And now 2009 we bottomed out on the S&P at 666 in March and since then have rallied strongly and in emerging markets even more, but the dollar was weak. And I expect now maybe for the next couple of months a period of a recovering dollar and a correction time in asset markets..... Because a strong dollar means global liquidity is tightening." Watch the full interview."

Here is the chart showing the US Dollar Index (DXY) against the S&P 500. You can see the inverse correlation.



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