Sensex may retest 10-12K levels

Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report, said he saw a correction of 25-30% in equities and that he expected the Sensex to retest 10000-12000 levels. “Markets will correct as it becomes evident that the economic recovery is not as rapid as expected.”

The US Federal Reserve will throw more money into the system as the economy deteriorates and so it would not be very favourable to be long on the US dollar, Faber added.

On commodities, Faber said that prices would continue to go up in the next couple of years, regardless of the global scenario as the supply of commodities could not be increased.

“Commodity prices will find support due to excessive quantitative easing by the US and the global commodity prices will rise if economies improve.”

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