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: