If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Remember when a trillion dollars was actually worth something? The latest interview gives you an idea of what Marc Faber and other economist think about Ben Bernanke’s latest decision.
Anything under a trillion dollars will dissapoint investors as they already factored in quantitative easy #2
Investors already factored in quantitative easing round no.2
Faber expects more weakness in the dollar and is bullish on gold, silver and industrial commodities
Faber also expects a short correction but then expects a boom in stocks and commodities (by Christmas)
Finally, he is negative on cash and bonds but is reasonably positive on equities due to inflation
Marc Faber explains the real reasons for the current economic crisis on CNBC. Also, Dr. Faber gives some recommendations as to where investors might find investment opportunities.
Author and publisher Marc Faber appeared on CNBC to discuss several topics such as global equities, gold and current economic conditions in the U.S and abroad.Faber is expecting a trading range for the rest of the year with a slight dip coming in the next month or so followed by a rally to close out the volatile. According to Faber, one of the most important decisions asset allocators face is where to invest their money when interest rates are at near zero. Faber states that dividend yields will attract investors into equities and cause a possible rally.
“I think the difficulty is what to do with money when interest rates are essentially at zero on US dollar then obviously people look at their portfolios and they see stocks that have dividend yields. In Singapore, Thailand, Malaysia, you can have stocks yielding 5% on the dividend. So, the money flows essentially into these stocks.”
Marc Faber continues to be bearish on the U.S. government as the fed continues to print money. Faber blames their inability to forecast what the economy is doing as well as the strength of the economy. Things aren’t looking to “boomy” as Faber believes more quantitative easing is coming as the economy continues to weakens.
An interesting comment Marc Faber makes is when he compares how the U.S. government is paying it’s debts by essentially running a Ponzi scheme. Basically, at current levels, the U.S. government could barely pay the interest on bonds it had previously issued. It is currently paying the interest by continuing to issue new bonds. But, at one point the interest payments will be so high that newly issued bonds will be worthless.
