Marc Faber: “it’s very tough for a forecaster who was ultra-bearish to stay bearish”
In the wake of the huge consumer confidence number that caused U.S. markets to rally yesterday, Marc Faber is still singing from the same songbook that I am: delayed end to the recession and a weak recovery. See the video below.
The video also mentions the fact that Nouriel Roubini is in this camp. Faber says that Roubini has been forced to become more bullish due to the huge (bear market?) rally in stocks brought on by a tide of massive monetary and fiscal stimulus. Faber said, “it’s very tough for a forecaster who was ultra-bearish to stay bearish, because if he’s wrong he has a reputational risk.”
I certainly fall in to that camp as well. Ultimately, one can never underestimate the power of printing money. This is going to have a positive effect for the time being. But, papering over structural problems is going to create problems once recovery takes hold.