Dr. Doom is circling! Marc Faber predicts a global recession in Q4 of this year or early 2013, putting this odds at a cool 100%. He thinks investors are missing the point with their fixation on Europe (he’s recently commented that Europe’s real problem is too much state involvement, which I agree with). Faber believes that slowdowns in China and India are the real threat to the global economy.
Faber believes the markets have already priced in a Eurobond and weaker Eurozone that still contains Greece (as reflected in the euro’s recent price declines). At present, he does believe markets are oversold and due for a rally (same goes for the euro).