Monday, January 23, 2012

Equities are attractive relative to Government Bonds

Marc Faber : " I wouldn't say that they are (the stocks) particularly attractive , look i am in Switzerland at the moment the ten years government bond yield is 0.7 percent and you can buy quality companies like Nestle Novartis and so forth and they have a dividend yield of say 3 percent , so relative to government bonds equities are attractive , and if you really think it through and you are as bearish as I am , and you think the whole financial system will eventually collapse we do not know in three years or five years or ten years but one day there will be a reset and everything will essentially be started anew then you're better off in equities than in government bonds because a lot of government bonds will either default or they will have to print so much money that the purchasing power of money will depreciate very rapidly "

The Gold Correction is not over yet

Marc Faber : Well I like it (Gold) yes , but I think the correction is not over yet , we had a big correction from the peak on September 6th when gold hit 1929 dollars we went down to around 1522 dollars at the end of December now we've rebounded over 1600 , I think we can have another leg down
if I were an investor or a saver I would buy (Gold) every month a little bit and not everything at the same time - in Fox Business News
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Expect More Quantitative Easings in Europe and the US

Marc Faber : well I think that eventually you want to be positioned more in equities than say government bonds and you want to own some precious metals as well - in Fox Business News
Click here to watch the full interview >>>>>

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