Marc Faber : You have to be diversified in Your Assets

Marc Faber : I tell everyone that you have to be diversified in your assets. The risk of gold is that it doesn’t generate a cash flow. So assuming you had all of your money in physical gold, and it goes down, it’s going to be difficult to save your position. If you have a diversified portfolio and you have some physical gold and you have some fixed-interest securities and high-dividend shares and some real estate properties that provide you with some income, then if assets go down, you have at least have cash flow for reinvestment purposes. I am a cash-flow person and I have a large, physical-gold position. I keep on buying a little bit of gold every month. I want to increase my allocation to gold. But I think there is a chance that before gold really takes off towards the upside again, that we have one more move on the downside. I wouldn’t rule it out. - in Seeking Alpha

Marc Faber : The Technical Position of the Market has deteriorated very badly

Marc Faber : It is easy to say that the correction would happen. More interesting is the thought that the early-April highs of 1422 on the S&P could be a longer-term high that we will not revisit for some time. The fact is simply that the technical position of the market has deteriorated very badly as the rally progressed from the Oct. 4 lows of last year, when the S&P went down to 1074. The market is vulnerable. Many stocks sell off on news that is not really bad, but not just as good as expected. So I am of the view that maybe we have something more serious here. Don’t forget that the S&P is, in essence, one of the very few indexes in the world that has beaten their highs in 2011. All the European markets have not made new highs and most emerging markets — with exceptions like the Philippines, Indonesia and also I think Malaysia — have not bettered 2011 highs. - in Seeking Alpha