Marc Faber: World War 3 Has Already Begun

Marc Faber: World War 3 Has Already Begun

Marc Faber interviewed on Bloomberg on January 6, 2009. He gives the Bloomberg talking heads a nice lesson on how capitalism works early in the first video.

Comments on the economy:

  • 2009 will be a “write off” economically
  • The Obama economic plan will be a disaster in the long run – as is all government economic intervention

On gold and industrial metals:

  • Gold is now extremely overvalued compared with other industrial metals – he would rather buy a basket of oversold industrial metals than gold
  • Small mining companies have been decimated – he’d look at these also

On world geopolitics:

  • World War 3 has already begun – he’s referring to US occupation of Iraq, Afghanistan, and the potential India/Pakistan conflict
  • China and Russia want nothing to do with American troops in Central Asia

On market leaders:

  • He favors the market leaders in each industry (ie. Intel, Cisco, Microsoft, Oracle), as they will be the strongest position when the economy turns up
  • Especially likes the top names in Asia – names a few examples around the 2:30 mark

On the BRIC’s (Brazil, Russia, India, China)

  • He’d look at buying here as a trading opportunity, because asset prices have come down so much – they now look oversold
  • Prefers ETFs as the trading vehicle
  • “You have to buy the tennis balls that rebound.”

“The trade of 2009 is to short US Treasury Bonds – big time.”

Marc Faber Video – Part 1:

Marc Faber Video – Part 2: