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Buy Stocks Because U.S. Dollars Will Be "Worthless," Says Faber

Posted Sep 22, 2009 09:27am EDT by Peter Gorenstein in Investing, Newsmakers
Related: fcx, gld, nem, chk, ng, xom, pfe

Marc Faber, editor of The Gloom, Boom & Doom Report is, by his own account, "ultra-bearish" on the long-term fundamentals of the U.S. market.  (Discussed in detail in this clip.)

However, in the near term, Faber sees plenty of money-making opportunities in stocks.  Sure, prices aren't as cheap as they were in March, yet he's confident, "in this environment cash will become worthless."  As a result, he says investors are, "better off being in equities," for the next two to three years.

Faber is most bullish on mining and energy companies.  He recommends:

  • Newmont Mining and FreeportMcMoran as relative inexpensive.  He also mentions Nova Gold, as another, more speculative buy.
  • In a contrarian call, on natural gas, he says Chesapeake Energy will be a winner when prices eventually rebound.
  • Oil giant ExxonMobil is another stock he thinks offer good value.

Outside of that, Faber says buying large-cap pharmaceuticals like Pfizer and Johnson & Johnson offer good defensive options.

Finally, he suggests U.S. airlines are poised for a rebound. If that happens, international airlines will follow and Thai Airways stock could double.

 

 

 

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