Marc Faber on Bloomberg (19/8/11) — ‘To make new highs above 1370 on the S&P will be incredibly difficult’

Marc Faber was interviewed on Bloomberg TV yesterday (19/8/11). He spoke about US treasury bonds, gold, equities & currencies. See below for the video and summary.

 

 

Summary:

 

  • The US Treasury bubble may not burst for a while because the Fed will probably keep short-term rates at 0 for a long time and also because there will probably be some kind of QE3 and QE4 (be it official or unofficial).
  • The investor who buys the 10-year at this yield for the next 10-20 years will not make any money.
  • Gold has had a run-up that is above the trend-line so a correction can occur. If the gold price dropped by $100-$150, there would be a lot of physical buying.
  • Swiss franc not as good as gold — it’s managed by a central bank.
  • David Rosenberg called the bull-move in US Treasuries.
  • Shorter-term, treasuries are ok.
  • Long-term investors should diversify — bonds, cash, gold, equities, real estate. Today, Marc Faber would prefer equities over bonds over the next 10 years.
  • Equities will probably go lower because the market has given a very bad sell signal.
  • The Hewlett Packard stock has been acting poorly for three months.
  • ‘To make new highs above 1370 on the S&P 500 will be incredibly difficult’

See here for our collection of rare historical economic data.

Posted Aug 20, 2011
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