Marc Faber Choose REITs Over Cash and Bonds

The Governments wants you to lose money on Cash by keeping interest rates artificially too low

Marc Faber says that he owns quite a lot of REITs here in Singapore and Honk Kong , I think the dividend will be cut , but let's say compared to cash or bonds , Cash is made undesirable by the government in the sense that not only they do not pay you almost nothing for your deposits but also the fees in the banks are so high that's essentially the goal of the government to make you lose money on cash and force you to speculate that was the policy after 2001 by keeping interest rates artificially low and we know now what the result was , so the big crisis is yet to come in my opinion says Marc , but say you buy REITs here , even if they cut the dividend by 50% you will still have a higher yield than cash deposit and you have an asset and that asset in my opinion over time will appreciate , because the worse the economy becomes the more governments will print and some people will say well the output cap will prevent inflation from occurring ! you know what the output cap in Zimbabwe is 99% below potential GDP and where do you have the highest inflation ? in Zimbabwe of course ....so basically strong economies have low inflation because usually they have fiscal surpluses and there is no need for the governments to pile in on fiscal deficits and to print money , the weakest economies in the world have always had the highest inflation rates....

Marc Faber, editor & publisher of the Gloom, Boom and Doom Report prefers Singapore and Hong Kong REITs to cash and bonds. He explains why investment rationale to CNBC's Martin Soong.