Wednesday, April 11, 2012

Ease Up on Stocks, Gradually Accumulate Gold: Marc Faber - Yahoo!Finance (blog)

"Where investors were overly negative last year, they are now overly optimistic about the prospects for the U.S. economy," Faber says, pointing to the ''huge bull run'' we have had since 2009. "I think the (stock) market is very overbought."

While he still supports gold's long term opportunity, he feels the precious metal is "still in correction phase" and that "individual investors should gradually accumulate gold" because of the outlook for continued money printing by the Fed and other central banks around the world.

His advice to investors is ''to hold some cash, hold some precious metals, hold some equities, and hold some real estate," he says, adding that "if one asset class or the other declines substantially move money into that asset class."

Marc Faber is a famous contrarian investor and the publisher of the Gloom Boom & Doom Report newsletter.

Sunday, April 8, 2012

MARC FABER: Beware The Unintended Consequences Of Money Printing

Marc Faber worries about the unintended consequences of money printing. Beyond currency devaluation, it creates malinvestment that leads to asset bubbles that wreak havoc when they burst. And even more nefarious, money printing disproportionately punishes the lower classes, resulting in volatile social and political tensions.
In the short term, it has been working to some extent in the sense that equity prices are up and interest rates are down. And, so companies can issue bonds at extremely low rates. But every money printing exercise in the world leads to unintended consequences at a later point. And, this is the important issue to remember. We don’t know yet for sure what the unintended consequences are.