Thursday, July 29, 2010

Marc Faber Still Bullish On Gold, Bearish On Treasury Securities

As passed along by the Chicago Tribune's Gail MarksJarvis:
Investors, who think they are safe hiding in bonds, are playing with fire, The Gloom, Boom and Doom Report publisher Marc Faber warned in Chicago.

"When the turn comes and inflation and rates rise, all the money in bonds will move into equities," he told analysts and money managers from throughout the world at the CFA Institute's summer seminar....

In 2007, Faber was warning investors to avoid stocks as he observed the growing threat of a financial meltdown. Now, he says the cure for the meltdown is a threat to bonds, which would plunge in value if rates and inflation rise -- as he says they ultimately will.

"At some point people won't want to be compensated at two percent" in bonds, and will put money into stocks, he said. "Government bonds will not be a good investment for the next 10 years."
Faber also likes Asian stocks and those of "developing frontier economies," but he keeps returning to the themes of physical gold and agricultural land.

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