Marc Faber on Armageddon Buy Real Assets, He Says

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Prepare for
War, the Death of capitalism and Bankruptcy of the US Government
(not necessarily in that order)

A vintage performance
from the author of "The Gloom, Boom & Doom Report".
This morning – living up to his reputation for bearishness
– Marc Faber forecast a litany of unpleasant events ahead.

His key message
is: buy real assets. He thinks it will take years for the global
economy to recover, but when it does the effect of governments’
printing money will ultimately reignite inflation.

"If you’re
in any field, you should own a farm because one day you will be
grateful that you are able to grow your own agricultural produce."

Recovery will
be slow because government meddling in the markets will postpone
it. He argues that the final low for markets and for growth will
only come when the debt and losses have been cleaned out of the

Unless the
system is cleaned out of losses, "the way communism collapsed,
capitalism will collapse."

"The best
way to deal with any economic problem is to let the market work
it through."

The Fed is
destabilizing, it’s creating "enormous volatility".

Marc thinks
the yields in government bonds bottomed out in December 2008 –
rather than lend money to the US government he suggests buying a
portfolio of large, quality blue chip stocks. They will grow and
survive – and reposition to take advantage of the rising importance
of the emerging economies.

the rest of the article

18, 2009

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