Marc Faber : the bear market for bonds may last 20 years

Marc Faber : ...Basically the bond market in the US has been in a bull market since 1981. In my view, the bull market ended on December 18th, 2008 when the 10 years treasury yield reached a low of 2.08% and the 30 years yield of 2.53%. But the bulls on bonds - the so-called deflationists - will maintain that bonds will continue to rally and that the 10 years yield and the 30 year yields will drop to between, say, one-one quarter per cent and two per cent.

I do not think that this will be the case because if the economy weakens again and you have deflation, that would be required to get these yields down there. You would have further massive fiscal stimulus and as a result of that, the deficit and the government’s debt go up and then the interest payments on the government debt go up. The ability of the government to pay the interest on its debt will diminish if the credit quality goes down. For that reason, I do believe that we will see new lows in interest rates.

So we had the bull market in bonds that lasted 1981 to 2008 - in other words 27 years - and now we are in a bear market for bonds that may last 20 years and bring yields to record highs that would mean on the 10 years note a yield of over 15%. ....
via economictimes.indiatimes.com

Marc Faber: sell cash and bonds before the bubble burst

Marc Faber : Investors should buy stocks and sell cash and bonds because governments are continuing to print too much money and may create a new “credit bubble, “Instead of interest rates' going down, they could start to go up. Instead of the dollar being weak, it could strengthen,” Marc Faber told reporters during a forum in Seoul, South Korea, last week. “I'm ultrabearish on everything, but I believe you'll be better off owning shares than government bonds,” he added.
In 1987 Dr.Marc Faber also warned his clients to cash out before the Black Monday on Wall Street. He made them handsome profits by forecasting the burst in the Japanese Bubble in 1990. He correctly predicted the collapse in US gaming stocks in 1993; and he foresaw the Asia-Pacific financial crisis of 1997/98 and the resulting global volatility. Dr Doom motto is "Follow the course opposite to custom and you will almost be right"

Bond Bubble Gets Bigger

How investors should manage their portfolios, with Dan Cook, IG Markets, and Gibson Smith, Janus Capital Management.

Faber : Bonds bubble like Dot-com bubble

Marc Faber stay away from the 19 year long bull run

Marc Faber : “I think there isn’t much upside potential in Treasuries unless it’s for the short term. Even the short term is uncertain. But if I look 10 years ahead, where do I want to have my money? Certainly not in U.S. Treasuries.”
"In 1999-2000, foreigners also wanted to buy the Nasdaq, and what happened after that was a massive collapse," Faber said. "So I don't see foreign buying as a very intelligent leading indicator." Marc Faber explained that he is 'not interested in buying an asset class that has been in a bull market for 19 years,' and that he would rather place his investments in farmland, agricultural commodities and of course gold.