Saturday, January 10, 2009

Marc Faber: World War 3 Has Already Begun

Marc Faber interviewed on Bloomberg on January 6, 2009. He gives the Bloomberg talking heads a nice lesson on how capitalism works early in the first video.

Comments on the economy:
  • 2009 will be a "write off" economically
  • The Obama economic plan will be a disaster in the long run - as is all government economic intervention
On gold and industrial metals:
  • Gold is now extremely overvalued compared with other industrial metals - he would rather buy a basket of oversold industrial metals than gold
  • Small mining companies have been decimated - he'd look at these also
On world geopolitics:
  • World War 3 has already begun - he's referring to US occupation of Iraq, Afghanistan, and the potential India/Pakistan conflict
  • China and Russia want nothing to do with American troops in Central Asia
On market leaders:
  • He favors the market leaders in each industry (ie. Intel, Cisco, Microsoft, Oracle), as they will be the strongest position when the economy turns up
  • Especially likes the top names in Asia - names a few examples around the 2:30 mark
On the BRIC's (Brazil, Russia, India, China)
  • He'd look at buying here as a trading opportunity, because asset prices have come down so much - they now look oversold
  • Prefers ETFs as the trading vehicle
  • "You have to buy the tennis balls that rebound."
"The trade of 2009 is to short US Treasury Bonds - big time."

Marc Faber Video - Part 1:

Marc Faber Video - Part 2:

1 comment:

barton said...

love the Faber videos ... doesn't mince his words ... agree completely on the treasury trade - short them ... but be patient with the TBT ... get the right entry ... good luck -

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