‘Doctor Doom’: US Treasuries Now the ‘Mother of All Bubbles’
by Philip Haddon Citywire
The number of leading commentators warning on US treasuries continues to grow, with Marc Faber — author of the Gloom Boom and Doom Report — saying he would not put his money in them and that under President Obama he fears the US deficit problem will worsen.
Speaking on CNBC, Faber — known as ‘Doctor Doom’ — said: ‘Even the short term for treasuries is uncertain. If I look ten years ahead, where do I want my money? Certainly not in US treasuries.’
Faber’s thoughts echo those of Barry Ritholtz, who earlier this week told Citywire that Treasuries resemble dot com stocks. Faber too, makes the link between the bond market of today and the tech stocks of the late nineties when asked whether foreign buyers will continue to keep the bond market afloat.
‘In 1999—2000, foreigners also wanted to buy the Nasdaq, and what happened after that was a massive collapse,’ he said. ‘So I don’t see foreign buying as a very intelligent leading indicator.’
Faber said he is ‘not interested in buying an asset class that has been in a bull market for 19 years,’ and would rather invest in farmland, agricultural commodities and gold.
On the same TV show, fellow perma-bear Peter Schiff of Euro Pacific Capital was even more forthright in his verdict on the US bond market.