Marc Faber speaks on
Reuters Insider: The Fed just stated the obvious. The global stocks' sharp decline in the last few days only reflect their concern about the outlook of the world economy. The US sptock market peaked this year on May 2nd, when the S&P went to 1370 and the market has been declining since then. The Fed's decision to shift asset holdings from short-term to long term will pose significant challenge in the future when there's a need for the Fed to increase interest rates (for whatever reasons such as concerns about inflation). Doing so would put pressure on the bond market.
His view is that if the S&P drops to around 900 to 950, the Fed will implement QE3. The dollar will continue to gain momentum because he thinks USD is still better than other currencies. Regarding China, there are views that the Chinese bubble is bursting (as indicated by the Hong Kong stock market). The Chinese economy is slowing down and might crash. Gold will continue to high value because when asset prices go down, Mr. Faber believes everyone will pressure the Fed to print money
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