mark faber editor of the boom gloom and doom report. you with us. >> it's my pleasure. >> last time you were here you said that the new highs in the markets cannot be trusted which proved to be a good call. at this point do you see further downside to the s&p 500? >> yes, i see further downside not because of the fed statements, but because like always they hedged their bets in the sense that the tapering off would not necessarily stop mr. bernanke said if the economy does not improve along the lines that we expect, we will provide additional support. so i think the markets are worried about something else. first of all, interest rates have been rising now for a year. the ten-year treasury note and 30-year treasury bond yield bottomed out last july. so we've been in an uptrend in interest rates. then, as i maintained for a long time, the chinese economy is much weaker than the official statistics suggest. my view would be that at the present time the chinese economy at the very best, the very best, is growing at something like four perc

joining us now on the "squawk" news line mark faber. pleasure. thank you. >> what do you see oversold at this point in time, the ten-year treasury note or the stockmarket? >> the stockmarket isn't oversold in anyway except for the next ten days on a very short-term basis. but longer term, we're still overbought, not just in the u.s. but in many other countries as well. the ten years is very oversold and near term and into immediate term and gold is even more oversold. >> so are you a buyer of bonds? i think as an investor, you need discipline and patience. and i think the best course of action is actually not to buy anything but rather to reduce positions on a rebound. >> lots of, so, reduced positions on a rebound. so you are selling into any kind of strength that we see even if it's momentary, you are selling right into it. that's what you are saying? >> no, i think the s&p could rebound to around 1630, 1640. >> what's the downside on the other side of that, assuming you are trying to get out? you think it will go as far down as? >> w

be the next japan and mark faber weighs in.s house flipper to his list of credits. we'll explain about that. >> we are days away from a key jobs report that could trigger a change in the strategy. >> let's ask paul miller and jason goldberg at barclays. good morning, guys. >> good morning. >> good morning. >> jason, let's begin with you. there's been a lot of focus on the performance of financials and one of the strongest sectors this year. does that take into account the potential for higher rates and what happens if we don't deliver on that front? >> certainly, i think the stocks are pricing in a better economic environment. housing data approved and consumer confidence has improved and loan growth off to a slow start in the first quarter and seems to be improving in the second quarter and the group should benefit from the prospects of higher interest rates. as the economy expan, loan growth follows and helping to get interest margins. banks have been good on expenses and credit quality is very benign and they're buying back

and obviously mark faber and rabini have been all over that viewpoint.japan's central bank finally woke up to the fact that 20 years of their quantitative easing hasn't moved the needle. and lo and behold, there's other things they can do as well as a political system that at least under abe is actually taking initiative. they had the monetary, but now they have the fiscal. we haven't talked about japan as a global force in the world for, you know, a long time. and it still is the third largest economy or the fourth if you make the european union one economic bloc. >> joe, you ran a piece over the weekend by a fellow who said that he wanted to put all of thigh money into yen. he wanted to put his mortgage into yen because he thinks this whole thing is going in a very wrong direction. >> even mark cuban has refinanced a bunch of his debt into yen. kyle bass has done the same thing. it's kind of a pr stunt, but it's kind of a clever way to express being negative on the yen. if you think the yen is going to turn to toilet paper. >> do you remember a few yea

mark is at. the fund forum international in monaco all week. on the agenda tomorrow, some big names. the gloom, boom and doom reporter marc faberey. tune in on wednesday for peter de proft, the director general at efama and martin gilbert from aberdeen asset management. so a fantastic lineup. >>> angela merkel's party has unveiled its 2013 manifesto with a headline pledge to boost spending by 30 billion euros. we'll take you to berlin after the break. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you h