Mike Santoli: Market Partying Like It’s 1995; Marc Faber: I’ve Never Seen Such A Disconnect Between The Asset Market and The Economic Reality. Something

Market Partying Like It’s 1995: Santoli
Stocks have been posting gains in a manner reminiscent of a no-correction bull market in the mid-1990s, Mike Santoli of Yahoo! Finance said Friday.
“Not only did it gain 34 percent, but it did it in probably the most gentle, low-drama way you could imagine going up 34 percent,” he said. “You never had a 4 percent pullback.”
Stocks ended the week higher with the Dow Jones Industrial Average and the S&P 500 closing at new record highs.

http://www.cnbc.com/id/100728622

Marc Faber: “Something Will Break Very Badly”
During an interview with The Globe and Mail, ‘Gloom, Boom, and Doom’s Marc Faber unleashed some awful truthiness about gold “I buy gold every month”, real estate “bubble territory”, and the likelihood of a crash in smoke-and-mirrors-like asset markets.
Q: Is it a good time to buy gold?

Faber: Nobody knows whether it’s a good time to buy gold or not…as I have repeatedly said in my reports, I buy gold every month and on the recent decline I bought more at $1,400 and I have an order at $1,300 and one at $1,200 and one at $1,100 an ounce. But they were not filled, just the $1,400.

I will never sell my gold, as I repeatedly told people. …. My maximum allocation to gold at present time is 25 per cent of assets.”

Q: Mr. Faber, you have indicated you believe there will be a market crash this summer. Can you tell us what might precede such an event?

Faber: “What was the trigger of the ‘87 crash when markets fell 21 per cent in one day? What was the trigger of the Nasdaq crash in 2000? What was the trigger of Japanese crash of 1989? What was trigger of 2007 crash that brought global stocks down 50 per cent?

We don’t know these things ahead of time, but something will always move markets up and something will always move them down.

I would guess at the present time, given markets from the 2009 lows have in many cases increased by as much as 100 per cent, that they are no longer very cheap. …. Something could come along, geopolitically or otherwise. I would be very careful being overweight equities.

“In the 40 years I’ve been working as an economist and investor, I have never seen such a disconnect between the asset market and the economic reality… Asset markets are in the sky and the economy of the ordinary people is in the dumps, where their real incomes adjusted for inflation are going down and asset markets are going up…

Something will break very bad.”

http://www.zerohedge.com/news/2013-05-10/marc-faber-something-will-break-very-badly


Druckenmiller: “When You Get This Kind Of Rigging, It Will End Badly”
When even Home Depot’s Ken Langone is questioning the reality of this rally (CEO of one of the best performing stocks since the Dow last traded here), you have to be a little concerned. However, it is Duquesne’s Stanley Druckenmiller’s point that with QE4EVA it is impossible to know when this will end but warns that “all the lobsters are in the pot” now as he notes that “if you print enough money, everything is subsidized – bonds, stocks, real estate.” He dismisses the notion of any sell-off in bonds for the same reason as the Fed is buying $85 bn per month (75-80% all off Treasury issuance). The Fed has cancelled all market signals (whether these are to Congress or market participants) and just as we did in the 1970s, we will find out about all the mal-investments sooner or later. “This is a big, big gamble,” he notes, “manipulating the most important price in all of free markets,” that ends one of only two ways, a mal-investment bust (as we saw in 2007-8) or full debt monetization and “off we go into inflation.”

http://www.zerohedge.com/news/2013-03-05/druckenmiller-when-you-get-kind-rigging-it-will-end-badly
Bill Gross: Bull Market in Bonds Is Over
Bill Gross said the three-decade bull run in bonds ended last week when the 10-year Treasury yield hit 1.67%, in his latest attempt to call the top in a market whose buoyancy has been aided by central-bank policy and long questioned by skeptical investors.
The manager of the world’s largest bond fund stressed that a bear market in bonds won’t start until economic growth and inflation pick up — an arrangement that he doesn’t expect to see immediately.
Gross, founder and co-chief investment officer of Pacific Investment Management Co. and manager of the world’s biggest bond fund, made the comments Friday on his Twitter account and in a subsequent interview with The Wall Street Journal.
Gross: The secular 30-yr bull market in bonds likely ended 4/29/2013. PIMCO can help you navigate a likely lower return 2 – 3% future.
http://blogs.wsj.com/moneybeat/2013/05/10/bill-gross-bull-market-in-bonds-is-over/