Overbullishness — Marc Faber weights in

Could this be said in any better way?
But what disturbs me now is that in late August, sentiment was very negative worldwide and people said that Dow would drop to 1000 and so on. Suddenly now, the consensus is that you have to be in equities, you have to be in gold, you have to be in assets, because central banks around the world will print money. That’s correct, they will print money.

But sentiment has become so universally bullish that about all assets, especially emerging economies — in US dollar terms — are up. This year, the Indian market is already up 19%, Malaysia 28%, and the Philippines, Indonesia and Thailand each over 40%.

We already have big moves and I see all brokers upgrading the earnings estimates and so forth. So, I become a little bit apprehensive about this universal bullishness. I would rather think that after a strong month of September, when everybody was expecting September to be a horrible month, October and November may be bad months.

In the past, October has frequently been a disastrous month, like we had the October 1987 crash, we had the late September-early October 1929 crisis. In 1976 and 1978, we had very bad months in October and November. So, who knows, out of this present bullishness, we could have some kind of a sharp correction developing.
in Economic Times, quoted from this unofficial blog.

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