(GuruFous, June 29, 2009) Marc Faber, managing director of Marc Faber Ltd. and publisher of the Gloom, Boom and Doom Report, talks with Bloomberg's Erik Schatzker and Deirdre Bolton about the outlook for the U.S. equity market.
Faber also discusses his investment strategy, prospects for economic recovery and concerns about inflation. Here are my notes for the video:
1. Marc Faber Correctly called the 1987 market crash and stated back in March , 2009, stock market would rally and industrial metal. Lately said loose monetary policy will lead to hyperinflation
2. Stock market has seen its lows as if the market drops, more government stimulus package will come
3. Economic recovery will be disappointing since only Government is creating job but private sector is not. US Federal Budget Deficit will go up
4. For the next 12 months, investors do not want to be in cash. That is lot cash on sideline that may be moved to other asset class, but not into bond. Money could flow into precious metal.
5. But money also can flow into equity. Equity has value in inflationary environment as the replacement cost is inflation hedged
6. Neat term (4-6 weeks), gold may sideline, dollar may strengthen, industrial commodity could come down. but longer term, USD will depreciate, Asian equity will do better than US/Europe equity market.
7. Repeated his assessment for high inflation down the road. there is no political will to reduce the budget deficit. Inflation will go up.
Here is the vide clip:
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1. Ben Graham Net Current Asset Bargains
2. Buffett Munger Best Bargains
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Faber also discusses his investment strategy, prospects for economic recovery and concerns about inflation. Here are my notes for the video:
1. Marc Faber Correctly called the 1987 market crash and stated back in March , 2009, stock market would rally and industrial metal. Lately said loose monetary policy will lead to hyperinflation
2. Stock market has seen its lows as if the market drops, more government stimulus package will come
3. Economic recovery will be disappointing since only Government is creating job but private sector is not. US Federal Budget Deficit will go up
4. For the next 12 months, investors do not want to be in cash. That is lot cash on sideline that may be moved to other asset class, but not into bond. Money could flow into precious metal.
5. But money also can flow into equity. Equity has value in inflationary environment as the replacement cost is inflation hedged
6. Neat term (4-6 weeks), gold may sideline, dollar may strengthen, industrial commodity could come down. but longer term, USD will depreciate, Asian equity will do better than US/Europe equity market.
7. Repeated his assessment for high inflation down the road. there is no political will to reduce the budget deficit. Inflation will go up.
Here is the vide clip:
Want to stay in equity, but run out of ideas of good investment? You can do it, GuruFocus can help!
We publish two newsletter based on time tested value investment principles to help you get started:
1. Ben Graham Net Current Asset Bargains
2. Buffett Munger Best Bargains
Click here for details
