Marc Faber On Laszlo Birinyi saying that gold is his biggest short:
"To that I respond there
are many people out there, they never owned an ounce of gold in their
lives. They were bearish about gold at $300, bearish about gold at $700,
bearish about the stock market in 2009 when the S&P was at 666.
Now, they are bullish about stocks and they are still bearish about
gold. The commercial hedgers - these are professional miners, mining
companies and people involved in gold trading. They have the lowest
short exposure, since 2001 when gold was at $300. Similarly, in the
silver market, the commercial hedgers, again, the professionals have the
lowest short exposure since 2001. I would rather bet on the commercial
miners, the commercial hedgers than on some forecaster who knows about
the future of prices as little as I know. The only thing that I know is
that I want to own some physical gold because I don't want all of my
assets in financial assets."
"First of all, I believe that today we
are talking about the global economy. The U.S. stock market has just
about outperformed any other market around the world in the last 6 to 12
months. We have big trouble coming into emerging economies. The
emerging economies are not performing well, There is no growth at the
present time. The Chinese economy, maximum is growing at four percent
per annum. We have multinationals in the S&P. Their growth and
global growth came from the last four years from the recovery in the
emerging world. If the emerging world does not grow, the global economy
will not perform well and corporate profits, as we just saw today from
Oracle, will disappoint and stocks won't be the best investment in the
world…Will not be a very good investment. I think the market is on the
high side, corporate profits are inflated and we could easily, from the
recent high, May 22 at 1687 on the S&P, drop by 20% to 30%, easily."
- in Bloomberg : Click Here to watch The Full Interview >>>>>>
