Friday, August 26, 2011

Equities look reasonably attractive compared to treasuries

Marc Faber : if you compare treasury bond yields and equities , Equities look reasonably attractive compared to treasuries , I think we will have zero and below zero interest rates for the next ten years in the real terms in other words inflation adjusted , to keep money in cash is a disaster for the next ten years , and finally the mood is so negative right now , as a contrarian you do not take a huge short position when people are as bearish as they are now , and when insider buying has peaked up as much , but believe me I am as bearish as the greatest bear is , it just that I do not believe that stocks will implode - in Bloomberg

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