Marc Faber told CNBC on Friday he believes a "massive speculative bubble" has encroached on everything from stocks and bonds to bitcoin and farmland. He attributed the vast bubble to "symptoms of excess liquidity."
Faber said the market could still rise, "Yeah, it can go up even more, if you print money."
Click 'Marc Faber-Speculative Bubble' for details.
The founder of Oaktree Capital Management, billionaire Howard Marks said on the same day, "I think most asset classes are priced fully, in many cases on the high side of fair, but not at bubble-type highs."
Click 'Stocks are risky but no bubble yet' for comments from Howard Marks.
When the indices are in record territory the market is definitely on the high side and risk is getting higher with each record closing. So how high is high ? And how long the run can last ?
If I go by the chart and if Dow continues to behave nicely, within a month or two, Dow is likely to reach 17,000 to complete its wave (ix) of its major wave (5). And of course the actual route for wave (ix) changes with events. The wave can be extended and it also can fail and start to come down anytime. The only way is to monitor closely and see how well behaved is Dow.
I believe as long as liquidity is there, created by 'money printing', assets will continue to move higher, assets bubble will continue to grow bigger and bigger and bigger. But if one will to stop now he may miss out the final exponential surge that may last a few weeks, a few months or a few years. Your guess is as good as mine.
.
.
If we have the % increase in amount of additional money printed since after the previous Dow peak, we may have a good projection of how far Dow can still go.
ReplyDelete