Just want to be diversified around the world: Marc Faber
ET Now
Jun 22, 2012, 01.26PM IST
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ET Now: Let us start with gold. I understand that you are bullish on gold and you believe that in the current environment the best thing to buy or the best asset price to buy is gold?
Marc Faber: I do not think it is necessarily the best asset. What I am suggesting is that people should diversify their assets and should own some gold compared to paper money. Over time central banks will continue to print money everywhere in the world. Therefore, the purchasing power of paper money will decline. So I would own some gold. We are in a correction period and we may still go lower. But on this weakness I would continue to accumulate gold.
ET Now: What about dollar then? Are you a dollar bull and do you think the currency is only going to appreciate further?
Marc Faber: I think it is very difficult to be bullish about the US dollar or anything in the US economy. But, compared to other currencies, the dollar is now a relatively safe currency. Global liquidity is tightening and so the dollar probably will continue to appreciate, most likely also against Euro. But it is not that the US dollar is particularly good. It is just less bad for the time being. I have to specify for the time being compared to other currencies.
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ET Now: You just talked about governments just printing more and more money. So can we expect the Fed to actually go about a QE3 as soon as September perhaps?
Marc Faber: Yes, that is quite a good assumption. I think that the Fed will not only have QE3, but QE4, 5, 6, 7, 8, 9, 10, up to 99 until the whole system collapses.
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ET Now: Where according to you real estate looks cheap?
Marc Faber: Well, it is good that you are asking this because there are two asset classes which in my opinion appear to be cheap. First of all in the US in some areas, in some states like in Georgia and Arizona, we had very big decline in real estate prices. Also, in Nevada and in Florida. As a result of that you can now buy homes in Atlanta or in Phoenix that are cheaper (and have the) same quality and size than homes in Thailand. Relatively speaking homes in the US in some areas are very inexpensive, in other areas they are not inexpensive. There are two different markets, high end and the lower end. Equally everybody is buying now US dollars and US stocks because they say Europe is a disaster.
I agree Europe is a complete disaster, dysfunctional and it is going to get worse, not better, but in the meantime you have many markets in Europe that are lower than they were at the low in March 2009. So all I am saying is yes I know that Europe is in a bad shape, but there are some good companies in Europe that have dividend yields of say 7% and so I am buying some of these companies. I am not enthusiastic about the economic outlook of Europe. I am not enthusiastic about the economic outlook of the whole world, but I think will outperform with these equities and sovereign bonds over the next 10 years.
More: http://articles.economictimes.indiatimes.com/2012-06-22/news/32369125_1_boom-doom-report-marc-faber-dollar-bull/2
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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