Macro investor Marc Faber, a commodities bull until the spring of this year, says that commodities have further to fall. From Bloomberg:
Oil will likely drop further in the next three to six months, according to investor Marc Faber, who reiterated his forecast that the second half of 2008 won’t be “favorable” for commodities.
The decline in crude, which today slid to a five-month low, is a “symptom” of economic slowdowns in the U.S. and Europe, Faber, who forecast the so-called Black Monday crash in 1987….
“In the U.S., if statistics were compiled properly, the economy would be in recession. Same in Europe,” said Faber, 62. “Oil coming down is a symptom of economic weakness.”….
Faber said he favors shares of AMR Corp., American Airlines’ parent company, even if the air carrier is “disastrous.” The stock’s 54 percent slump in 2007 and this year’s 26 percent slide makes AMR appealing, he said.
The publisher of the “Gloom, Boom and Doom Report” newsletter also said investors expecting a “strong stock market” in Thailand will be disappointed…..
“People simply have to understand Thailand is essentially a political mess,” he said. “The economy is not very dynamic and it will continue to kind of move ahead slowly. These people looking for a strong stock market, I think that will be misplaced.”