Marc Faber first explains "Political Correctness" (PC), which has become the outcome of a distinctive 'turn' in Leftist politics. There's a list of things one must think or say together by the elites, and goes against the right of the individual to establish his or her own beliefs. He goes as far as to say PC "is indeed a purely totalitarian concept, and it asserts the fight of those in power to suppress all but the party line's official lies."
Moving on to deal with to asset markets, Mr Faber explains bond yields have been rising all around the world, and this may negatively affect equities. Based on that fact and several technical indicators, he believes there's significant downside right for stock markets worldwide, and at least it's much more risky than perceived by the crowd of investors.
Marc Faber also mentions one investment he's done recently: gold stocks, as Gold and Silver mining stocks have the potential to rebound by between 30% and 40% following the dramatic slump experience in the last few months.
There's one attachment to this MMC:
- "The Importance of Being Diligent" by Shinya Deguch, working for Star Magnolia Capital, which provide details about fraud at Bayou Management.
The report is also available on Slideshare.