Dr. Marc Faber
Gold and silver to outperform US bonds and equities!
- Despite its correction from $730 to the current level, gold is still up 12% year-to-date compared with a gain of 7% for the S&P 500. I continue to believe that over the next few years gold and silver will significantly outperform US financial assets.
- Monday, October 16 - 2006 at 07:53 |
More cautious on bonds!
- There is now a widespread belief that the US housing market is dead and that the economy will slow down, and that therefore, bonds will continue to rally because the Fed will shortly begin to cut interest rates. I may add that the media is also full of negative stories about the housing industry.
- Thursday, September 14 - 2006 at 08:11 |
Beware booming asset markets!
- The upside potential for equities appears to be very limited despite the likelihood that the Fed will not increase the Fed fund rate at its August meeting. There is much resistance for the S&P 500 between 1290 and 1320 and technical conditions are not supportive of a strong and sustainable rally.
- Wednesday, August 23 - 2006 at 21:10 |
Should you buy bonds?
- Personally, I think that at present Two-Year Treasury notes, which yield around 5.1 per cent, offer an attractive alternative to equities because, in the past, when the Fed stopped raising interest rates Two-Year Treasury bond yields fell on average by 120 basis points over the next six months.
- Sunday, July 16 - 2006 at 15:29 |
Arab bourses may bounce, otherwise take a holiday
- For our Middle Eastern friends, I believe that for the next few weeks, their extremely over-sold stock markets could rebound around 20% to 30%. New highs are, however, out of the question.
- Tuesday, June 13 - 2006 at 09:36 |
Poor Mr. Bernanke can’t win!
- Had I been a lecturer at a university in the past, and if I had, at the time, the opportunity to grade student Ben Bernanke, we would have today a different Fed chairman. I would have had to let him fail his final exams. I would have told him that he might be better off to learn the trade of a printer than that of an economist.
- Monday, May 15 - 2006 at 14:21 |
My advice remains to be extremely defensive
- Most asset markets including stocks and commodities are extremely overbought, and there is far too much speculation in all investment markets. Therefore, severe downside volatility, also in precious metals, should not be surprising in the period directly ahead.
- Sunday, April 16 - 2006 at 16:03 |
Holding cash is not such a bad idea!
- In sum, my view is that holding cash is now not such a bad alternative. I fully expect to be able to buy most assets at lower prices within the next three to six months.
- Thursday, March 23 - 2006 at 12:46 |
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