INTERVIEW: Marc Faber discusses China, gold, and the Fed
by Tekoa Da Silva
Source: Sprott’s Thoughts
http://thecrux.com/marc-faber-as-global ... ore-money/
“I believe that we’re already entering a recession in the United States” and U.S. stocks will fall in 2016, he said.
Faber’s predictions haven’t always hit their marks.
Since he called long-term U.S. bonds “a suicidal investment” four years ago, the 30-year Treasury has returned 8.7% per year, according to Bank of America Merrill Lynch data.
Last year, he touted gold and predicted U.S. stocks would plunge; since then gold has plummeted and stocks have gained.
"That could drive the market up to maybe around 2,050, but I don't necessarily see new highs, and if new highs happen, they will happen with very few stocks participating," he said.
But Faber is not so not gloomy: After that near-term rally, he expects another decline around the globe.
"[The U.S. dollar] is not a desirable currency," said Faber, perplexed why the world has been so "enthusiastic" about the greenback.
"I think the most desirable currency will be gold, silver, platinum and palladium. I still think the mining sector has embarked on a new bull market."
"I think that in Asia, the sentiment turned very bearish at the end of last year and especially concerning China and the Chinese economy. And as a result of that, Macau gaming companies got slaughtered," Faber said.
"And now they are, in my view, at a relatively attractive level. They started to move up: [Las Vegas] Sands China, Wynn China."
“[The U.S. dollar] is not a desirable currency,” said Faber, perplexed why the world has been so “enthusiastic” about the greenback.
“I think the most desirable currency will be gold, silver, platinum and palladium. I still think the mining sector has embarked on a new bull market.”
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