Doom, gloom, greed & fear: What markets should expect next

Some thoughts from Marc Faber on the dollar and equity markets from the FT.

Another reason for near term-caution, in Faber’s view, is the increasing likelihood of a US dollar rebound. As of last week, he notes, the net number of contracts speculators held betting on a decline versus a rise in the value of the dollar against currencies traded on the CME was nearing extremes, which in the past was associated with at least a temporary US dollar rebound. And since US dollar weakness accompanied the stock market rally since early March, dollar strength is likely to occur simultaneously with a stock market correction.