Marc Faber, editor of “The Gloom Boom And Doom Report,” offers his latest views during an interview with “The Globe And Mail” about gold, real estate, and the likelihood of a market crash.
Apparently, the fact that the US stock market keeps printing new record highs in one of the strongest bull markets in a half century, hasn’t made him any less contrarian or pessimistic.
Via The Globe And Mail“:
Faber: “What was the trigger of the ‘87 crash when markets fell 21 per cent in one day? What was the trigger of the Nasdaq crash in 2000? What was the trigger of Japanese crash of 1989? What was trigger of 2007 crash that brought global stocks down 50 per cent? We don’t know these things ahead of time, but something will always move markets up and something will always move them down. I would guess at the present time, given markets from the 2009 lows have in many cases increased by as much as 100 per cent, that they are no longer very cheap. …. Something could come along, geopolitically or otherwise. I would be very careful being overweight equities. I still have 25 per cent in equities and 25 per cent in corporate bonds.”
“In the 40 years I’ve been working as an economist and investor, I have never seen such a disconnect between the asset market and the economic reality… Asset markets are in the sky and the economy of the ordinary people is in the dumps, where their real incomes adjusted for inflation are going down and asset markets are going up.
“Something will break very bad.”
Faber also talked about gold. When asked whether this is a good time to buy the precious metal, one of gold’s best-known fans responded:
“Nobody knows whether it’s a good time to buy gold or not…as I have repeatedly said in my reports, I buy gold every month and on the recent decline I bought more at $1,400 and I have an order at $1,300 and one at $1,200 and one at $1,100 an ounce. But they were not filled, just the $1,400.
I will never sell my gold, as I repeatedly told people….My maximum allocation to gold at present time is 25 per cent of assets.”
Read more at TheG&M.com.