Marc Faber: McDonald’s tells us why the market will collapse

Ronald McDonald - Public Domain

Marc Faber has long predicted that a collapse in U.S. stocks is coming. On Thursday he reiterated that call, saying there is fresh evidence that a bear market is ahead—courtesy of the Golden Arches.

On Tuesday, McDonald’s reported that global same-store sales in August fell 3.7 percent in August, well short of expectations. The worst drop occurred in the Asia-Pacific region on the back of a Chinese meat safety scandal, but even U.S. sales slid 2.8 percent.

For Faber, those results are a perfect example of the damage being done by central banks—and the harbinger of more bad news to come.

“Nobody knows for sure” what will cause stocks to collapse, but “the earnings may disappoint. We had, essentially, very poor sales from McDonald’s. Now, McDonald’s is a very good indicator of the global economy. If McDonald’s doesn’t increase its sales, it tells you that the monetary policies have largely failed in the sense that prices are going up more than disposable income, and so people have less purchasing power.”

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1 thought on “Marc Faber: McDonald’s tells us why the market will collapse”

  1. He is right! Disposable income is at an all time low.
    Thanks mostly to things like Obamacare being forced down the throats of all Americans.
    The Republicans have fell on their faces over this issue. The opposition has done nothing to change things back. They claim they do not have the votes to make it happen.
    Well we are going to give them the votes at the next election. Then it is put up or shut up.
    If they fail to do anything about it, then they are history.
    No one will ever believe in them again. That goes for the rich as well as the poor.

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