In late-December Marc Faber warned that higher yields could crush the market rally. While this hasn’t happened yet, as the Dow flirts with 20,000, the yield on the US 10 Year Treasury Note has fallen and traded at 2.398% Monday morning.
Higher Yields to bring Trump Rally to an End
Faber talks about the low of 1.3% on the 10-YR and warns the market may not be able to bear higher yields…
Marc believes if you are optimistic about the world, it is better to buy markets outside of the U.S. Despite this, Faber believes Trump is an improvement with respect to the business market, compared to Obama or Clinton, but warns asset prices are too high.
Lastly, Faber also reminds investors that the bull market which began in March of 2009 is nearly 8 years old – historically very mature.