This month report is entitled "No Rational Thought will have a Rational Effect on a Man who has no Rational Attitude" where he explains it is about time that the so called “new-Keynesians” or “neo-Keynesian” (aka Voodoo economists :)) should consider that current interventions with expansionary fiscal and monetary policies have led to the current economic crisis. He also discuss a view shared by Robert Gordon, an economist at Northwestern University, who believes that the poor US productivity performance since the 1970s is a harbinger of things to come, and that “the rapid progress made over the past 250 years could well be a unique episode in human history rather than a guarantee of endless future advance at the same rate.”
Marc Faber is now negative about most asset classes, and believes equities could easily decline by 20% or even more from their recent highs, and expects better buying opportunities to emerge sometime in 2013, although a post election rally could always take place.However, he very much doubts US equities will make new highs the next twelve months or so.
There are two attachments to this monthly market commentary (MMC):
- "US CEO Confidence Stuck in a Rut" by Alan Zafran, a partner at Luminous Capital.
This attachment is available on CNBC website, and discusses the lack of enthusiasm of 1,000 CEO who have been surveyed recently.
- "Albert Einstein was right" - Some photos which clearly show that Mr. Gordon has a point.