Tuesday, December 09, 2008

Marc Faber: The 2009 Global Economy Will Be A "Total Disaster"

Marc Faber's observations on a CNBC interview from December 1, 2008:
  • We're experiencing the largest asset deflation since World War II
  • Since 2001, every asset class in the world went up - except the US dollar. Fast forward to 2008, and every asset class has collapsed - except the US dollar.
  • The global economy will continue to deteriorate badly next year. It will be a "total disaster".
  • He sees a short-term rally in US stocks, due to the current oversold conditions.
  • The "Warren Buffett" approach of buying and holding stocks has been dead for 10 years, and it will be dead for another 10 years.
  • He expects volatility to stay sky high. It will be a "trader's market".
  • Equities will not make new highs in real terms for years to come.
  • Commodities have corrected within a bull market. He believes there are opportunities to be found there.
  • The Chinese economy is a "disaster." It's going to get worse.

Marc Faber's current investment recommendations:
  • Commodities...when the global economy recovers (and he expects this to take 5-10 years!)
  • Within the next 12 months - short US long term government bonds

Part I: Marc Faber on CNBC - Dec 1, 2008:




Part II - Marc Faber on CNBC - Dec 1, 2008:



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1 comment:

reeljerc said...

Can't believe I was unaware of Marc Faber before today. Really digging what he has to say

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