Marc Faber Favors Gold over Cash and No New Lows in the Stock Market

Dr Doom Marc Faber was today on Bloomberg from Seoul Korea , Marc Faber says he Doesn't See New Stock Market Lows and that he Favors Gold , " what it means for equity market is that we probably and most likely seen a major low on march 16 when The S&P hit 666 , here in Asia most markets actually bottomed out in October November last year , let's say for one reason or the other the S&P which then went to 956 and is now at 920 re drops to 800 , I am sure there gonna be another stimulus package and another massive monetary injection and if that does not help then another one will come when the $&P drops towards 700 I do not think we will see new lows and I also believe that the economic recovery will be disappointing with the government sector expanding as the government sector has already expanded in the last ten years it's basically the government that is creating jobs , private sector is hardly creating any jobs , and that stimulus will be very hard to take away , so I believe the fiscal deficit will not come down next year and in 2011 but actually go up " said Marc Faber before adding " you do not want to be in Cash because obviously when you have ZERO interests rate as you have now on bank deposits and treasury bills you won't earn any money on the other hand you may not lose that much , but basically there is a lot of cash on the side line in treasuries and in deposits that eventually can move to one or the other asset class , it may not move into bonds because obviously the bond market over time will also smell some inflationary pressures and the depreciation in the value of the dollar so where does the money flow ? it can flow into some precious metals like Gold Silver Platinum and may be palladium but obviously it will flow into equities....."

Marc Faber predicted the 1987 stock market crash , he was spot on when he predicted last march that stocks will rally and that industrial metals will out perform gold , and that is exactly what happened , Marc Faber managing director and founder of Marc Faber Ltd is also better known as the editor and publisher of the Gloom Boom and Doom Report