Via : Bloomberg
The financial services industry, hammered by job cuts and record losses, is in for an even bigger contraction as the global recession deepens said Marc Faber in an interview with Bloomberg.
“The financial sector will contract and it will contract much more than we’ve seen so far.” Faber also added that financial professional have been “been in paradise for the past 25 years.”
“The financial sector has been occupying themselves with trading against each other all day and it’s totally unproductive”
On Gold….
“I’m a little bit careful about the outlook for gold for the rest of the year,” he said. “A countertrend rally could occur soon where stocks would suddenly rise quite substantially.”
Possible Investments
Faber today recommended investors short U.S. Treasuries, as a 27-year bull market likely ended in December, starting the beginning of a long bear market. Faber also recommends selling the Japanese yen, though the nation’s stocks may outperform global equities in the next one or two years because they have been depressed for so long
Start a farm!
The best bet for investors may be to buy a farm and escape from the cities, as a prolonged recession could lead to war, as the Great Depression did, said the Swiss national, who now lives in Thailand.
“Buy a farm and let your girlfriend work on the farm,” he said, to the applause of investors. “If the global economy doesn’t recover, usually people go to war.”
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