05/10/10 Stockholm, Sweden – Jim Rogers and Marc Faber were both interviewed recently on Bloomberg Television and each came to the same conclusion… the market is overbought and due for a correction. They suggest it’s time to start paring US stock investments.
From Bloomberg:
“Equities had a ‘normal correction’ and were ‘overdue for a sell-off’ after rallying from last year’s low, Rogers, Singapore-based chairman of Rogers Holdings, told Bloomberg Television today. ‘The market was overbought, ahead of itself and due for a correction,’ Faber, publisher of the Gloom, Boom & Doom report, said in a separate interview yesterday…
“…’Being down 3 or 4 percent is a big, big number but that’s hardly panic, not yet,’ Rogers said. According to Faber, recent declines suggest ‘that maybe we’ve made a major high in the latter part of April this year and that we will, from here on, have a more meaningful decline.’
“Investors should ‘be very careful and cut back’ on their holdings if they have any ‘doubt,’ Rogers said. While a bankruptcy for Greece will be a ‘good thing’ for the country and the euro, it may result in ‘great instability’ for markets as investors worry about contagion in other economies including the U.K. and the U.S., he said.”
Time will tell, but the market spasms of last week could be a sign a top’s being put in on the current rally. Government intervention pushed the market higher and now could be expected hour that it’s losing steam. You can read all the details, and find links to the television interviews, in Bloomberg’s coverage of Rogers and Faber advising reduced US stock investments as the market slumps.
Rocky Vega
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let’s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
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