This might well have been true about a decade ago.
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."
I think McDonalds poor sales is more of switch to healthy eating than anything else. Quite a few people are starting to shun McDonalds supposedly unhealthy food for Chipotle and other restaurants. The tasty and healthy burritos gives Chipotle revenue growth of 27% and earnings growth of 30% in 2014. No one can say that people aren't eating at Chipotle because their disposable income is in the dumper. Just anecdotally, the last time I walked by a Chipotle there was a line out the door and down the street. So the purchasing power of the proles might not be as big an issue as Faber is talking about.
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