Marc Faber, publisher of the Gloom, Boom & Doom report, spoke with Bloomberg TV's Betty Liu. The overall gist of his commentary was that a euro zone breakup would be beneficial and that he believes European peripheral equities are oversold. But like me, he believes that market leadership in the US is narrowing and earnings growth has stalled. This does not support higher market valuations. If the Fed tries to push equity prices to far with QE3, it could end in a crash, Marc says. Take a look.
Source: Bloomberg Television http://www.bloomberg.com/video/92396635/
Bloomberg copy below
Faber on whether he still thinks that profit margins will shrink and record profits seen will be no more for U.S. corporations:
"Yes, if you look at the statements by c...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.