In this Marc Faber gloom boom doom report, he says that you shouldn’t look only at indicies, but there have been corrections from the bottom all over the world. The market bottomed in March of 2009, and everything has gone up tremendously since then. The dollar might for a change strengthen, and the equity markets may correct.

Since the huge rally, the rate of increase has diminished. At the same time, there is still a lot of optimism among economists and investors about the economy and equities. There is also pessimism about the dollar.

The economic fundamentals are still very poor. In the private sector, everything is down about 20% There has been some improvement, but we are much lower than a few years ago. This is a major reason that the Marc Faber gloom boom doom perspective is still so compelling.

There are excess capacities in China. They also had the largest stimulus package in the world in terms of GDP. Although it will need to correct, it may be able to run for a while.

If you had to choose whether to go long or short in India, then you should probably go short. But that is a short term play. You may want to reevaluate that trade in a month or so. Agriculture and resource related shares are looking attractive in India.

Finally, this Marc Faber gloom boom doom report notes that commodities also look good. It is unlikely that there will be any new lows there. It is very difficult to create a new copper mine or oil well. There are two commodities that may be really cheap. One of them is natural gas. It is at a really low level right now. The bonds market is not terribly attractive. We are in a market in which volatility will increase.