From FT Alphaville:
As a growing number pundits call the bottom for equities, the latest market watcher to weigh in with the suggestion that stock markets are oversold is Marc (aka Dr Doom) Faber. We won’t go into detail (as subscribers to his monthly newsletter tend to get upset if we do), but broadly, Faber’s latest missive notes significant improvement in stock markets around the world, despite continued deterioration in economic conditions, and suggests an “intermediate positive stance”.
Asian equity markets are particularly attractive, he says - also in light of the growing likelihood of further dollar weakness. Indeed, as the FT reported Tuesday, Asia-Pacific equities were positioned to mark their biggest monthly gain in a decade on Tuesday, despite declines this week in some major markets including Japan (where stocks however have held up remarkably well considering relentlessly grim economic data).
Whereas Faber doesn’t expect any full stock market recovery within the next two years - and doesn’t feel we’ve yet seen the final low in the current bear market - he predicts some “further headway” before the coming summer....MORE