Marc Faber Analyzes Midterm Elections and QE2
Investor Marc Faber speaks with Bloomberg about China’s imbalances and the effect of midterm elections and the Fed’s next round of currency debasement on the economy.
Faber believes midterm elections won’t change anything, but thinks QE2 may be disappointing to investors. He says a correction is overdue in the stock market and precious metals, which may result in a buying opportunity.
Equities are more attractive than bonds and cash in the long run, Faber believes. He advises investors to avoid cash and US government bonds, if investing for the next 10 years, and recommends an accumulation of precious metals.
Faber thinks the US dollar is oversold, while the Japanese yen and Swiss franc are overbought. We may be at a point where the dollar may rally for a while, he predicts. Faber cautions investors to be wary of shorting the dollar at this time.