Prominent bear Marc Faber, who earned the moniker "Dr. Doom" after launching his Gloom, Boom & Doom Report, is surprisingly upbeat about the prospects for the North American economy in the short term. Always the contrarian, Faber is betting against a consensus he believes is too negative on the North American economy's prospects over the next six months or so, given the prospects of interest-rate cuts, a resilient consumer economy and reduced energy costs.
"If the market breaks to the upside, you could have quite a violent rise in stock prices because the hedge-fund community and the investors by and large are underweight equities compared to where they were in May," Faber says.
Unlike pseudo contrarians who are trying to convince you of bearish big picture, this guy is real contrarian and is willing to change his opinion based on facts. His books are excellent if you want to develop true contrarian thinking. He is now bullish on North America and US markets and his reasoning makes a lot of sense.
As you have seen there are already mutinies on the bearish gurus sites, so expect all those following the wrong gurus to pile on to the market once they realise they are missing out on money making opportunity. Wall Street is littered with zombies of Gurus who gain great following for a short time due to their ability to break through media clutter with bold bearish or bullish calls. Once the followers realise it was all marketing they drop them and chase new guru. That is the only constant in the market.