<<< Faber predicts now that the financial system will ultimately break down, and even forecasts that the current fad of printing money in the West will lead to World War III. In the meantime, own stocks, real estate and commodities, not bonds and cash, he recommends. Among his favorite current calls: invest in natural gas, now very cheap, and Japanese stocks. Beware the U.S. stock market, particularly small- and mid-cap stocks. Gradually buy gold. Real estate is a bargain, though not in China and Hong Kong. Emerging markets are likely to continue to correct, and the U.S. dollar should gain. >>>
Faber is a stock market bear, and says beware of the US stock market... so I take that means buy foreign stocks only. But he says emerging markets will continue to correct, so that narrows the field. And many of the emerging market plays are commodity stocks...no ? He also recommends own NG, but not US mid cap stocks or emerging market stocks. So buy the commodity NG ? That not easy, or perhaps mid and small cap NG stocks are an exception ? He says buy gold, but also says that the US dollar should gain.... could be that both go up together, but not the norm. He also says do not be in cash... but again that the US dollar should gain. Hmmmmm.
So what I take away from this is: RE is a bargin Own NG in some fashion Own foreign stocks, but not emerging market Own commodity stocks, but not neccessarly emerging market Own Japanese stocks
Mexico City is safe - yeah, right... the mayor must have been paying for his trip.
Mexico is cheap and should benefit in terms of economic/job growth from inflation in China and growth in the USA -- OK, I buy that.
He was touting precious metals as a hedge against inflation but said that metals are due for a correction in the short term.
He said treasuries are bad but that stocks could do well in an inflationary environment.
He said Tarp and QE 2 have worked at least in terms of saving the world as we know it.
I thought he seemed to be favoring commodities and emerging markets as longer term themes.
He thinks the US deficits are a ticking time bomb. Duh...
I find him irreverent and funny... but this mantra of *buy gold, invest in asia, treasuries have nowhere to go but down*... this is not exactly the stuff of genius. Our own Doc Joe has much more to add than that...
All the doom and gloom commentators who have been against TARP, QE2 and the rest of the actions that saved the markets need to wipe egg off their faces. Wrong for over 2 years and probably wrong for another 2...
Guys: stand in line, kiss Bernankes posterior and thank him that you still have a job.
Unemployment has done nothing but go down since BB took over the Fed Chair. The current administration should be ashamed of the little they have done for jobs, especially for all the QE, bailouts and borrowing that has been allocated. Why should anybody thank him ? In fact, UE never been higher in Cali... and many other states. He's more the problem than the solution. If I'm unemployed and I borrow money or use credit cards to pay my bills, did I actually solve my problem ... or make a bigger one ?
Get rid of the Federal Reserve, they serve themselves.... just like the majority of our stinkin lawmakers.
Hi , get the opinion of the 10 people you most respect on this board , way better than some pancake (here that means someone who changes his mind all the time, so he's never really wrong.. remember his prediction before the meltdown .. i remember he had none , i was shorting... ( i did lose 8%)).