I've posted the latest video of Marc Faber on Bloomberg (November 11, 2008). Faber currently believes:
- The equity markets are extremely oversold at this point.
- However, he would not bet on a big rally - it could happen, but is not a given, as economic news will continue to be terrible.
- Government bailouts are tiny compared to the asset deflation we've witnessed - so he does not see inflation being a factor as a result.
- BUT - as a result of capital projects being cut, commodity prices could skyrocket when the global economy picks up again (and this could take years).
- For example, a lot of oil exploration will stop at these prices, because it's not profitable.