Marc Faber’s observations on a CNBC interview from December 1, 2008:
- We’re experiencing the largest asset deflation since World War II
- Since 2001, every asset class in the world went up – except the US dollar. Fast forward to 2008, and every asset class has collapsed – except the US dollar.
- The global economy will continue to deteriorate badly next year. It will be a “total disaster”.
- He sees a short-term rally in US stocks, due to the current oversold conditions.
- The “Warren Buffett” approach of buying and holding stocks has been dead for 10 years, and it will be dead for another 10 years.
- He expects volatility to stay sky high. It will be a “trader’s market”.
- Equities will not make new highs in real terms for years to come.
- Commodities have corrected within a bull market. He believes there are opportunities to be found there.
- The Chinese economy is a “disaster.” It’s going to get worse.
Marc Faber’s current investment recommendations:
- Commodities…when the global economy recovers (and he expects this to take 5-10 years!)
- Within the next 12 months – short US long term government bonds
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