He explains that American economists has viewed consumption as the motor of economic growth since the early 20th century. This led to what he called the Affluenza, an All-Consuming Epidemic, accompanied by an unprecedented array of escalating imbalances:
- ever-declining personal savings
- a large fiscal and current account deficit
- exploding government and consumer debts
- a protracted shortfall in business fixed investment, employment and available real incomes.
He stresses that the sell-off in late May/June has been extremely benign by historical standards and that far more downside volatility is likely to occur in the months ahead.
Marc Faber concludes with some wise words by Roy D. Chapin:
Be ready when opportunity comes...Luck is the time when preparation and opportunity meet.
There isn't any attachment to this month commentary.