September 2014 Client Letter
Swiss investor Marc Faber PhD, also known as Dr. Doom, recently explained how news from McDonald’s could spell trouble for the stock market. On Tuesday, September 9th, McDonald’s reported a 3.7% decline in global same-store sales. That ranks as the company’s worst global same-store sales results in more than a decade.
Said Faber, “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.”