As the latest example of media working with Washington to bamboozle the public, the reader of the Yahoo piece won’t find an amplification of its salacious headline.  On the other hand, gold specialist firm GoldCore reports on the same day that global insider George Soros told the SEC he raised his stake in GLD, dramatically.

“Billionaire investor George Soros significantly increased his shares in the SPDR Gold Trust in the first quarter. Soros Fund Management nearly quadrupled its investment in the largest exchange-traded gold fund (GLD) to 319,550 shares – compared with 85,450 shares at the end of the fourth quarter,” stated gold market consulting firm GoldCore in an open letter to the public.

In addition to its hit-and-run article title, Yahoo slyly touches on a significant talking point of the Fed’s tactic of conditioning the uninformed investor into eschewing the only lifeboat available to most middle class investors during the global financial crisis—gold—by seducing the reader into believing that the U.S. dollar is a safe haven and that gold is merely another commodity vulnerable to terrible economic prospects.

Yahoo quotes a Fed primary dealer UBS in an interview with a primary outlet for Fed propaganda—Bloomberg Television:

“It’s a risk-off environment,” Peter Hickson, head of commodities research at UBS AG, said in a Bloomberg Television interview. “People are concerned about liquidity and they’re going to take security in the U.S. dollar.”

Former George Soros partner of the famed Quantum Fund, Jim Rogers, has repeated stated that the knee-jerk reaction by institutions and amateur investors to run to the dollar during this particular and protracted crisis is “the wrong thing to do”, as running away from the euro into another “flawed currency”, the dollar, will turn out to be financial suicide when the trade is over.  Rogers is staunch gold bull.

But speculators will take the trade for a short-term profit, according to Rogers, while long-term investors should view the quirk of madness in the gold market as an opportunity to buy gold at lower prices.  The Chinese and other Asian investors certainly have been, scaling into gold all the way down during the correction in the yellow metal.

“Right now, the gold market is in the middle of a battle between the paper traders and the holders of physical metal,” Goldmoney’s James Turk told King World News (KWN), Tuesday.  “We are seeing huge Chinese import stats for physical gold and robust demand elsewhere for physical metal.”

But Yahoo won’t lead with a headline about massive Chinese buying of gold or that gold futures (and silver futures) have slipped once again into backwardation, a market condition which implies heavy physical buying of the metal as the virtual paper market sells off.

“Do not listen to the propaganda and the mainstream media, and do not be spooked by market action because the manipulative activity in the markets right now is so extreme that the market prices are telling nothing about reality,” Sprott Asset Management’s Chief Investment Strategist John Embry told KWN on the same day as the Turk interview.

“I think it’s important at this time that people who’ve been around a long time and have a pretty good grasp of what’s unfolding should express their views to the public, just to counteract the propaganda that they’re receiving from mainstream media.  It’s tough enough without being lied to all the time,” he added.

With more than four decades of working the markets under his belt, Embry closes the KWN interview by advising nervous gold investors to “stick with your positions and you’ll be fine” in the end.  Stop reading comments by media and financial institution surrogates of the Fed, and stay the course.

ValueVision Media, Inc., a multichannel electronic retailer operating as ShopNBC (www.shopnbc.com), today announced operating results for its fiscal 2012 first quarter (Q1’12) ended April 28, 2012. The Company will host an investor conference call/webcast today at 11am ET, details below.

ValueVision reported Q1’12 net sales of $136.5 million, a 4.9% decrease versus Q1’11. Internet net sales decreased 2.8% while penetration increased 100 basis points to 45.9%. Combined sales in Jewelry & Watches, Health & Beauty, Home, and Fashion & Accessories grew by 12% in Q1’12 over Q1’11. As anticipated, sales gains in these categories were offset by Consumer Electronics sales which declined 76% in the period. The average price point in Q1’12 decreased 18.8% to $95 due to a higher concentration of product sales in Beauty, Fashion and Home combined with the decline in Consumer Electronics. Net units shipped increased 17.8% in the quarter vs. last year’s same period.

Gross profit in Q1’12 increased 20 bps to 37.4%. This was driven by a favorable product mix, partially offset by increased shipping and handling promotions. Gross margin dollars decreased 4.4% vs. the prior year, reflecting lower sales. Adjusted EBITDA in Q1’12 was negative $1.0 million compared to positive $3.1 million in the same period last year.

ValueVision CEO Keith Stewart commented, “While we are disappointed in our Consumer Electronics performance, we are encouraged by the improved results from our other product categories. We do not foresee a significant improvement in Consumer Electronics performance in the upcoming quarters. However, in the final three quarters of last year, our Consumer Electronics sales mix moderated, making the comparative performance of this category less impactful to overall results going forward. Although we will continue our efforts to improve Consumer Electronics performance, we are focused on further broadening our other higher margin businesses while investing in new businesses to grow our product mix and customer base.”

Added Mr. Stewart, “We are pleased with our strong net shipped unit growth in the quarter, reflecting lower average price points and broader customer reach. We were also able to maintain healthy gross margin levels in Q1 despite an increase in shipping and other promotional initiatives. We continue to improve our performance across a number of areas, though the Company’s turnaround is still a work in process. We remain focused on increasing top line sales through solid merchandise execution and customer experience initiatives. These efforts aim to further improve retention rates and ultimately drive higher sales per customer. With an experienced multichannel team in place, I remain confident in our ability to execute on those growth initiatives.”

ValueVision EVP & CFO William McGrath stated, “We made solid progress on the balance sheet in Q1’12. As of April 28, 2012, our cash position, including restricted cash, was $45 million compared to $35 million at January 28, 2012. The increase in cash reflects the seasonal timing of cash receipts from fourth quarter receivables as well as disciplined management of other working capital components within the quarter.”

In the quarter, the Company secured a $40 million revolving credit facility with PNC Bank, National Association. The facility bears interest at a rate of LIBOR plus 3%. During the first quarter, ValueVision utilized the new credit facility to retire its 11%, $25 million term loan and paid a $12.5 million deferred obligation to a TV distribution provider. These actions improved ValueVision’s financial liquidity and reduced future annual interest expense. As a result of the early retirement of the $25 million term loan, ValueVision incurred a pre-payment penalty of $500,000. The Company also recorded a non-cash interest charge of $2.4 million related to the write off of previously capitalized debt financing costs associated with the $25 million term loan.

Added Mr. McGrath, “Looking ahead, the impact of Consumer Electronics on our quarterly comparisons should diminish for the balance of 2012 and thereafter. Moving into next year, the recent renewal of our largest TV distribution relationship will also benefit performance by providing $15 million in annual cost savings starting January 2013.” Read more

Reminiscent of the gloom and doom articles of October 2008 regarding the gold price, a sudden spate of anti-gold propaganda and short-term bearish calls for the yellow metal have hit the web.  Sentiment in New York and London must be nearing a tipping-point level toward another capitulation of selling.

As of Tuesday in early afternoon trading in NY, gold stands at $1,556.73, trading below $1,600 for four straight trading days.  Reports of aggressive Asian buying of physical metal continue to stream in.

Because gold has not ‘decoupled’ from the equities market as speculated by some, another post-Lehman swan dive in the gold price is now expected by many influential and savvy investors and money managers, which, if that scenario materializes, the gold price could result in another incredible buying opportunity—a gift from the money Gods, if you will.

And the Fed would welcome the collapse, as well, as Bernanke desperately needs political cover of falling oil and precious metals prices to once again hasten more money printing to pay for trillion$ US budget deficits.

Charles Nedder of Nedder Research told Jim Puplava’s Financial Sense Newshour he anticipates a drop in gold to a cycle-low target price of $1,359 (approximately the 40-month MA) before rallying once again.

Since his call of July 2011 on Bloomberg Television, FX Concepts John Taylor hasn’t retracted his $1,000 gold target for 2012, and more specifically by the close of the month of May—this month.

Marc Faber still awaits a buying opportunity at gold prices closer to $1,300 than Taylor’s more draconian $1,000 target.

Jim Rogers posited a scenario for $1,000 gold in an interview with Business Insider, Tuesday, when he said that either a mass dumping of European gold to re-liquify European banks would most likely slam the gold market, or a gold import ban in India would surely trigger wholesale selling of the precious metal.

Each of these four men view a drop in the gold price as a nice entry point for the remainder of the gold market.

However, there are those who just don’t ‘get it’ (or don’t want to get it): Jon Nadler, Dennis Gartman and NYU professor Nouriel Roubini—the private sector trio who have slithered in mainstream media with their typical nonsensical analysis and entertaining chatter—especially Roubini, who hilariously stated on his Twitter account, Monday, “Gold bugs are hiding deep in their gold caves pondering why gold isn’t rallying in spite of the sharp spike in risk-off sentiment.”

Look out for those ‘preppers’ who live in caves, according the bizarre world of the Great Roubini.

And then, of course, the three-man love fest of Warren Buffett, Charlie Munger and Bill Gates have blessed us with their obviously staged performances, warning and ridiculing investors out of their gold positions, or for even considering gold as a hedge against financial collapse, currency debasement or dangerous geopolitical events.  The rational for staying with paper money contributed by these three men all read like a child’s play—intentionally spoken in a dumb-down 6th-grade language level for Mr. and Mrs. Front Porch to echo chamber with their relatives and friends.

Munger went as far as likening gold investors to Nazi-era Jews who sought refuge from persecution.

Buffett calls it, just a hunk of metal, despite 5,000 years of historical evidence which support the contrary.

And Gates, who looked like a fish out of water in his interview with CNBC’s Becky Quick, couldn’t (or wouldn’t) come up with anything intelligible to say about the subject of gold.  Because Gates is a famous billionaire, the Front Porches must then surmise that Gates is also an authority on the subject of money and anything else he may talk about.

Would Becky Quick care to interview Jim Grant of Ron Paul in the same format and at the same time of day?  Maybe Quick will cut to the chase, settle the subject once and for all, by interviewing Paris Hilton or Justin Beaver.  How about a 30-second public service announcement, starring Obama and Michael Jordan, tilted, “Just say ‘no’ to gold.”

Of the half-a-dozen cracked eggs, Jon Nadler, Dennis Gartman, Nouriel Roubini, Warren Buffett, Charlie Munger and Bill Gates, would any one of them make their  points loud and clear that investors should kick gold to the curb by taking on Peter Grandich’s bet of $1 million that gold will reach $2,000 before it reaches $1,000?

Probably not.  Each would have to clear it with the powers who have commanded them to play Lord Haw-Haw or Tokyo Rose.  The US is engaged in a currency, resources and geopolitical war, and Uncle Sam wants Americans to voluntarily throw themselves under the bus for a precious few oligarchs and political degenerates who have infested traditional American culture.

Rosetta Genomics, Ltd. is a development stage company that seeks to develop and commercialize new diagnostic tests based on a recently discovered group of genes known as microRNAs.

Seven Arts Pictures plc (NASDAQ:SAPX) traded as high as $.089 during Tuesday’s trading session and last traded at the high for a gain of 25.35% from Monday’s close… SAPX shares have traded as high as $5.75 over the past 52 weeks, which is 98.45% off that high at last traded stock price.

Seven Arts Pictures PLC is engaged in the development, financing, production and licensing of theatrical motion pictures for exhibition in domestic and international theatrical markets, and for worldwide release in other forms of media.

FriendFinder Networks Inc (NASDAQ:FFN) traded as high as $1.35 during Tuesday’s trading session and last traded at $1.30 for a gain of 21.5% from Monday’s close… FFN shares have traded as high as $7.65 over the past 52 weeks, which is 83.01% off that high at last traded stock price.

FriendFinder Networks Inc. is an Internet-based social networking and technology company operating several of the most heavily visited websites in the world, including AdultFriendFinder.com, Amigos.com, AsiaFriendFinder.com, Cams.com, FriendFinder.com, BigChurch.com and SeniorFriendFinder.com. FriendFinder Networks Inc. also produces and distributes original pictorial and video content and engages in brand licensing.

FriendFinder Networks Inc, a leading internet and technology company providing services in the rapidly expanding markets of social networking and web-based video sharing, today announced financial results for the first quarter ended March 31, 2012.

“Based on the initial results of several key initiatives we have undertaken to improve our performance, I remain optimistic about our long-term prospects.  Our current efforts are focused on building brand equity, subscriber retention and acquiring new subscribers to FriendFinder Networks,” commented FriendFinder Networks Chief Executive Officer, Marc Bell.  “To support these initiatives and to position FriendFinder Networks for growth, we have increased our customer acquisition costs in a meaningful way, a strategy we previously discussed.  Put into action in January, I am pleased to report that these actions resulted in an increase in new adult subscribers for the first time in six quarters.  Additionally, conversion rates increased marginally year over year for both our Adult and General Audience websites, a trend we expect to continue throughout the year.”

“While our renewed focus on customer acquisition activities and reallocation of resources impacted our financial performance and profit margins during the quarter, we are encouraged by the early trends we are seeing.  Going forward, we will adjust our spending based on results, as we continue to refine and optimize our efforts.  This undertaking requires patience and discipline but is expected to result in a significant payoff over the long term.”

Mr. Bell continued, “Operationally, we continue to experience success in our Live Interactive segment, notching our ninth consecutive quarter of year over year revenue growth. The general managers of each of our business units are focused on achieving specific milestones; and while some have done well, we continue to work with those that require additional support.  Our European operations remain challenging as we struggle to overcome low user conversion and transaction acceptance rates in the region.  Although operating expenses have improved, we are exploring additional costs saving measures.”

“Finally, we are on track with plans to transition Anthony Previte, our President and Chief Operating Officer, to the role of Chief Executive Officer effective July 1, 2012.  I will continue to serve as Co-Chairman and Chief Strategy Officer, with the assurance that Anthony is both qualified and motivated to assume his expanded responsibilities,” Mr. Bell concluded.

First Quarter Financial Results

Revenue for the first quarter of 2012 was $81.1 million. The impact of new subscriber growth was offset by a decrease in overall traffic and challenges in Europe.

Gross profit for the first quarter of 2012 was $48.5 million. Gross profit was negatively impacted by increased affiliate spending, which increased the Company’s cost of revenue.

Income from operations for the first quarter of 2012 was $7.8 million. Income from operations was negatively impacted by lower gross margins and the Company’s previously announced increases in advertising and general and administrative spending compared to the first quarter last year.  The Company expects general and administrative expenses to decline from quarter to quarter as the impact of the restructuring steps taken in January of 2012 reach their full impact.

Net loss from continuing operations for the first quarter of 2012 was ($13.4 million), or ($0.43) per share. The loss from discontinued operations, which resulted from the previously announced closure of all JigoCity operations except in Taiwan, was ($8.1 million) or ($0.25) per share. Read more

Tronic, Inc. (TRON) is a baby gold play that’s slid to $0.07 a share from well over $0.10.

As a quick look at the chart will reveal, that’s a huge discount from the 50-day trend.

And if that “reversion to mean” were to keep going, the upside potential stretches on and on!

Gold has been in the doghouse lately, true.

But it’ll probably get its wind back sooner or later.

When it does, TRON is sitting on an empire of gold mining claims.

This is an area of Canada so rich in precious metal French prospectors called it “Valley of Gold.” (Read more)

TRON has been busy grabbing acreage up in the Val-d’Or. That’s where the famous Abitibi Gold Belt ends! (Read more)

This is country where giants like Barrick Gold and Kinross have helped dig 170 MILLION ounces of bullion.

And TRON has 53,547 acres of it to play with. (Read more)

Exploration is now underway, so the updates could be fast and furious — and help drive eyeballs to TRON shares.

The headlines will help drive out the negative hype that unfairly surrounds this stock.

TRON started the year as a kind of “poster child” for investment spammers.

Sites like Marketwatch and the Motley Fool spent a lot of time fretting over it. (Read more)

And so there’s a double opportunity here.

First, TRON is still getting a raw deal from Motley Fool types, hiding the company’s actual prospects.

Second, when gold comes back — even a wiggle – TRON looks cheaper than ever.

When it happens remains to be seen, but maybe it’s time traders found out!

That indicator is the U.S. 10-year Treasury—the instrument of choice among hedge fund mangers when stocks become vulnerable to that big drop—that long-awaited second shoe thud of the global financial crisis.

Greek bonds, again, are swan-diving, driving rates north of 20 percent, and Spanish CDS spreads with German paper reached a record 526 basis points in European trading, according to zerohedge.com.

A crash through important support at 1.8 percent on the 10-year note will most likely give the green light to traders to panic out of stocks and to rush into the next leg of the ride to the very top of the 30-year bond market bull market—which now has reached bubble territory.  Gold will most likely sell off, as banks shore-up capital reserves and hedge funds make client redemptions during an equity market sell off.

“If we see the yield on the U.S. 10-Year Note break below the 1.8 percent level, what it’s to signal to bond traders around the world is that we have a deflationary wave coming,” trader Dan Norcini of JSMineset.com told King World News, Friday.

As far back as September 2011, 1.8 percent has been the rate at which traders have sold bonds and bought back stocks in anticipation of a ‘Bernanke put’, the widely-held belief that the Fed will come to the rescue of the markets in one way or another to prevent another first-quarter 2009 market crash, which took the S&P500 down to 666 in a harrowing scare reminiscent of the Crash of 1987.

After calling the March 2009 market bottom—to the day—two years later, in March 2011, Marc Faber, the editor of the Gloom Boom Doom Report, told CNBC’s Joe Kernen that the Fed won’t allow stocks (the only asset class it can ‘manage’) to tumble.  The Fed will intervene, according to the Swiss-born economist and money manager who now lives in Chiang Mai, Thailand.

“We are in a mild recovery; markets are a discounting mechanism,” Faber explained in the March 2011 interview with CNBC.  “And we have already doubled in the S&P from the low.  So on the improvement, maybe the market sells off.”

Kernen asked, “You figure QE2 . . . they’ll pretend that they’re going to end in June, but then eventually they’re forced to start it up again. . . . QE8?”

“I made a mistake; I meant to say, QE18,” Faber quipped.

“So it will be here in 2012, as well, and maybe in 2013?” Kernan asked.

“For sure. For sure,” Faber maintained. “Until very recently, the Fed has had very few critics. . . Over the past few months a lot of critical comments have come up about the Fed and its money printing habits. But I bet you, the S&P drops 20 percent, all the critics will be silenced, and they will applaud new money printing.”

Back to Norcini:  JSMineSet’s Norcini agrees with Faber’s assessment.  The bond market is telling investors the stock market is vulnerable to a big decline as the S&P approaches the 1,325 level—a level that Charles Nenner of Nenner Research suggested on Financial Sense Newshour is the target for either a rebound in stocks or a further slide into a dangerous negative feedback loop of selling below 1,325.

“I think the reason the 1.8% level has been a floor so far is because most traders are convinced the Bernanke-led Fed will not allow deflation to occur,” Norcini continued.

If 10-year note rates decisively break below 1.8 percent, the next stop might be as low as 1.15 percent, according to Portola Group Founder Robert Fitzwilson, who said in an interview with KWN two days earlier of the Norcini interview, that a drop in the 10-year to 1.15 percent can only mean a market meltdown of an unprecedented proportion.

“The Fed can’t let this happen,” Norcini continued, citing Fitzwilson earlier comments about the 10-year Treasury.  “What alternative do they have?  I’m not a fan of central banking, but what are they going to do?  Do they just let this deflationary tsunami engulf the planet?  This is the Great Depression II that Bernanke fears and he will not let this happen.

“The bottom line is Bernanke may not want to do another round of QE, due to the political implications, but the market may force his hand if stocks and interest rates really begin to plummet.”

As of Monday, the U.S. 10-year Treasury trades at 1.77 percent, six basis points from its all-time low yield of 1.71 percent set on Sept. 22, 2011.

Tii Network Technologies, a leader in designing, manufacturing and marketing network products for the communications industry, today announced that it has entered into a definitive merger agreement with Kelta, Inc., a Delaware corporation, pursuant to which Kelta will acquire Tii Network Technologies for $2.15 a share, or total consideration of approximately $33.1 million.  The merger consideration represents an approximately 48% percent premium over the closing price of Tii Network Technologies’ common stock as quoted on the website of the NASDAQ Stock Market on May 11, 2012.

Brian J. Kelley, President and Chief Executive Officer of Tii Network Technologies, said “We are pleased to announce this proposed Merger. Not only does it provide our stockholders with a significant premium to the market price of our stock, it also represents a significant benefit to our customers and employees.  We have had a positive, long term working relationship with Kelta, the contract manufacturer of our products.  With Kelta’s financial and other resources and capabilities, the Company will be better able to develop and produce new and improved products to meet the ever changing technology requirements of our Telco customers.”

Parag Mehta, President of Kelta Inc., stated “We believe that the combined strength of Tii and Kelta secures our position at the forefront of the industry.   We are committed to delivering a diverse and innovative product portfolio through a world class supply chain, resulting in a unique value proposition for our customers. Tii’s proven track record of providing industry leading telecommunication products, strong brand recognition and outstanding customer relationships, is a natural fit with Kelta’s expanding global manufacturing footprint and world class engineering capabilities.”

The acquisition, which was unanimously approved by the Board of Directors of Tii Network Technologies, is subject to approval by its stockholders, as well as other customary closing conditions.  The Company expects the transaction to close in the third quarter of 2012.  The acquisition is not subject to any financing condition.  Kelta intends to fund the acquisition with a combination of existing cash and funds available under Kelta’s current credit facilities.

OEM Capital Corp. has provided a fairness opinion in connection with the transaction to the Board of Directors of Tii Network Technologies.  Troutman Sanders LLP is serving as legal advisor to Tii Network Technologies in connection with this transaction. Edwards Wildman Palmer LLP is serving as legal advisor to Kelta in connection with the transaction.

Quasar Aerospace Industries, Inc. (QASP) has caught our eye as a unique way to trade the airline industry.

The chart shows that QASP is already on the go.

Were these shares really priced at 5 cents barely 6 weeks ago? 

The secret is that whether the airlines win or lose, QASP looks pretty sweet.

Carriers that are growing their routes — in China, for example — are growing too fast.

They’re having to go all the way to Spain to find qualified pilots. (Read more)

QASP runs a flight school…and has now filed the paperwork to open it up to foreign nationals. (Read more)

They’ve got space for at least 100 students this year and think they can charge $35,000 apiece.

Let’s be clear, there are 1.7 million QASP shares out there, so at 33 cents apiece, that $3.5 million goes pretty far.

That’s what, 48 cents in cash flow per share? 

Not that it’ll be all profit, but QASP management still expects to squeeze a 35% margin out of that business.

And since they only paid $120,000 for the business, all they really need is 4-5 students to pay that back.

Yes, they take what used to be known as “Marshall Plan” credit for ex-military types…and they provide student loans, too. (Read more)

So when traders heard that QASP signed up for a job fair and got in front of 40,000 prospective pilots, they jumped to get their tickets early.

Turnover soared from near zero to well over 400,000 shares. And the price action went pretty close to vertical!

From a measly 5 cents, QASP rallied all the way to 1/2 a dollar.

Even “down here” at $0.33, the technical lines still show plenty of momentum ready to feed the bulls on an all-new run.

The only historical resistance on the chart here is back up at $0.50.

For what it’s worth, that’s 50% up from here. 

Oh! You might be wondering how QASP wins if the airlines don’t grow like gangbusters.

Remember, with big carriers throughout the world going bankrupt, the survivors areoutsourcing everything they can. (Read more)

Training, maintenance, cleaning the planes, customer service…just about everything but the flight crews themselves.

QASP is already booking a healthy business doing jet repair and maintenance through its Corporate Air subsidiary. (Read more)

It may not be a huge business — $400,000 in revenue last year — but the gross margins are a spectacular 90%! (Read more)

Now imagine if the airlines start hurting so bad they never hire another pilot.

In that scenario, they’ll outsource even harder. And QASP will be in position to get its piece of that action.

Whether the shares have the same “win-win” proposition today, nobody knows.

But given the chart trend, you might kick yourself if you miss out on where QASP goes from here.

“I think the market will have difficulties to move up strongly unless we have a massive QE3,” Faber told Bloomberg’s Betty Lui on Friday.  “If it moves and makes a high above 1,422, the second half of the year could witness a crash, like in 1987.”

Faber’s comments about the market’s dependency upon further Fed ‘quantitative easing’ come off the heels of TrimTabs CEO Charles Biderman statement of Apr. 30, when Bidrman said in a weekly update, “It’s the Federal Reserve that controls the market” and “we play with their money that they print or stop printing.”

The wealth effect of record U.S. housing prices, robust credit-driven consumer spending, an employed workforce, and an economy fueled by ever-increasing debt has disappeared for the most part, leaving investors with little money to buy stocks.  And if there is money left over, the retail investor is buying bonds or parking extra cash in money market accounts in fear of the next show to drop in Europe, with fallout across the Atlantic anticipated to spill over to the U.S.

Collective market wisdom says that stocks have risen due to a natural rebound from oversold conditions in March 2009, relatively high dividend yields compared with Treasuries, and massive liquidity provided by the Fed.  But Faber feels that earnings expectations are too high and could disappoint, and that many companies paying out dividends from earnings could level off, be cut, or eliminated by some companies all together.

“If the market makes a new high, it will be a new high with very few stocks pushing up and the majority of stocks having already rolled over,” Faber continued.  “The earnings outlook is not particularly good because most economies in the world are slowing down.”

In mid-November of last year, Faber began speaking about the connection between easy Fed monetary policy and rising stock prices, by he also became concerned that, despite record global central bank stimulus the world economy was rebounding at a rather anemic rate compared with previous recovery cycles.

Faber told the Taiwan’s Taipei Times, “A third wave of quantitative easing by the U.S. Federal Reserve is just a matter of time,” as economic data showed, then, sluggishness in real employment rates, capital spending and global trade.

By December, Faber warned of at least a 10 percent correction for February—which never materialized.  In a subsequent interview, however, he admitted that calling market bottoms is far much easier than calling market tops.

Today, parallels can be made between 2012 and 1987, with both years starting out “strong” followed by a “correction,” he said in response to a viewer e-mail to Bloomberg.  “If we have a rally into August it could resemble 1987 with a crash in the fall.”

But a formal announcement by the Fed of further stimulus may change his outlook, Faber said.