‘We are doomed’. Who else can say this but the famous contrarian investor and author of the famous gloom, boom and doom reports, Dr Marc Faber. Speaking at the conference in the US, Faber gave his perspective on the financial crisis and his take on the future. While he did raise a lot of pertinent points, the one amongst the few that was important from an investing point of view was his observation the US Fed will keep interest rates at zero in real terms for as long as possible and hence, cash and long term bonds will be a bad place to hold one’s money and hence, equities and precious metals would be a sound place for wealth preservation. He also observed that everybody should have 50% of their money in the emerging world as these are not saturated and are growing rapidly.
As usual, he came down heavily on the US administration and commented that the lifetime achievement of Greenspan and Bernanke is really that they created a bubble in everything…everywhere. According to him, during the crisis of 2008, the financial system went bust but did not die. However, the next time it happens, the nations will go bust and ultimately, the world will go to war. Honestly, we couldn’t have ended on a more bitter note.
Source: Equity Master