Thursday, July 02, 2009

Marc Faber: You Don't Want to be in Cash

Just caught the latest Marc Faber TV interview on Bloomberg. Some quick notes on his thoughts:
  • Believes the March 6 stock market lows were major lows for awhile
  • If the S&P drops towards 800, we'll see new stimulus plans and loose money...and if it drops towards 700, we'll see even more...thus the lows are likely to hold
  • The economic recovery will be very disappointing
  • You don't want to be in cash or bonds, due to inflationary concerns
  • Gold is attractive as a hedge against inflation
  • Thinks the dollar and bonds could rally in the near term, but longer term, he's looking for a weak US dollar and strength in commodity prices
You can watch the full interview here.

Marc Faber is one of the sharpest investors in the world, and is author of the excellent book Tomorrow's Gold: Asia's age of discovery.

For an interesting counterpoint to the hyperinflation fears, check out my recent piece: Is Deflation "So 2008"? Hyperinflation Trade Looking Crowded

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