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:
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