Published on Tue, Dec 30, 2008 at 09:13 | Source : CNBC-TV18
Updated at Wed, Dec 31, 2008 at 12:21
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Marc Faber bullish on gold going forward
Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report, is bullish on precious metals going forward. "If you are betting on some kind of money flowing or gaining to assets, you should be into precious metals. I think gold from here on will outperform 2% the 10-year Treasury bond or Treasury note."
Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report, feels 2009 will be a better year. "In other words, the S&P 500 will recover to around 1,100-1,200. But famous strategists a year ago were predicting the 2008 end S&P 500 level of between 1,525 and 1,750. That depends very much on the money printing activity of Fed Chairman Ben Bernanke and fiscal measures taken by the Treasury and other governments around the world."
Faber is bullish on precious metals going forward. "If you are betting on some kind of money flowing or gaining to assets, you should be into precious metals and assets that cannot be increased at the same rate as money can be printed. I think gold from here on will outperform 2% the 10-year Treasury bond or Treasury note. I think the big trade in 2009 will be to go short treasuries massively. I really mean massively, because we may not have inflation for one, two, or three years. But I don't see how the Fed can tighten monetary policies to the extent that that the Fed Fund rate will be above nominal GDP growth rate and above inflation. So, we have essentially a tailwind for inflation in the long run and for precious metals."
Speaking on how the Asia will trade vis-เ-vis the US, Faber said stocks in Asia are cheap. "In Asia, the Japanese market is essentially back to the 1981 level and Korea and other markets are back to the 1988 level. I would like to remind you that if the US was to go back to the 1999 level, the S&P 500 would be at 300. So on a relative basis in Asia, stocks are cheap and they are also very inexpensive, if you look at the dividends compared to the local bonds yield."
Marc Faber, Editor and Publisher of The Gloom, Boom & Doom Report, feels 2009 will be a better year. "In other words, the S&P 500 will recover to around 1,100-1,200. But famous strategists a year ago were predicting the 2008 end S&P 500 level of between 1,525 and 1,750. That depends very much on the money printing activity of Fed Chairman Ben Bernanke and fiscal measures taken by the Treasury and other governments around the world."
