Tuesday, July 08, 2014

Wednesday: FOMC Minutes

by Bill McBride on 7/08/2014 09:00:00 PM

This never gets old: Years ago, whenever there was a market sell-off, my friend Tak Hallus (Stephen Robinett) would shout at his TV tuned to CNBC "Bring out the bears!".

That was because CNBC would usually interview "bears" whenever there was a sell-off, and interview "bulls" whenever the market rallied.

Today was no exception Marc Faber: The asset bubble has begun to burst

All in all, Faber is looking for a 30 percent drop in the S&P 500.
Here is Faber on April 10th: 2014 crash will be worse than 1987's: Marc Faber
"This year, for sure—maybe from a higher diving board—the S&P will drop 20 percent," Faber said, adding: "I think, rather, 30 percent"
And Faber from August 8, 2013:
Faber expect to see stocks end the year "maybe 20 percent [lower], maybe more!"
And from October 24, 2012:
"I believe globally we are faced with slowing economies and disappointing corporate profits, and I will not be surprised to see the Dow Jones, the S&P, the major indices, down from the recent highs by say, 20 percent," Faber said...
Since the market is up 40% since his 2012 prediction, shouldn't he be expecting something like a 50%+ decline now?

Wednesday:
• At 7:00 AM ET, the Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

• At 2:00 PM, the FOMC Minutes for the Meeting of June 17-18, 2014.

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