Marc Faber CNBC interview from July 17 (50 min.)
Marc Faber was on CNBC Asia on Friday July 17. He enjoys his image of a gloom and doom sayer, but it's not what he really is. He specializes in detecting very rewarding investments and spotting bubbles. Faber was bullish on stocks in March when most of the people were super-bearish. He thinks the stock market rally could last up to 18 months and the "ultimate crisis" to happen in 5-10 years...
As usual in his outspoken way and with his own special sense of humor... (unfortunately there may be ads before each clip). Enjoy...
huge deficits will create inflation and make stocks rise. "ultimate crisis" in 5-10 years (7:40 min.)
when markets are about to break down and they don't, expect a counterrally. Deflationists are wrong to buy bonds (4 min.)
People should hold some hard assets like gold and like real estate... especially in Singapore, because if there is WW3 nobody would drop a bomb on it, because it's politically irrelevant. Expects a big move in the markets (7:43)
If economy doesn't recover, a new stimulus program will be announced (=money printing). Increase exposure to Asia, except Japan. Buy blue chip stocks (also in the USA) (8:05)
a huge crisis like we had should clean the mess, but problem has been postponed because of interventions. This will lead to the "ultimate crisis" sometimes ahead and "it will be a total collapse, it will be wonderful..." ;-) (2:40)
Because of the quantity of money and debt created in the past 15years, gold will be much higher years ahead. New crash in stocks in a few years (3:28)
Chinese government only government to know official growth rates 3 years ahead... Sentiment in the stock market was so extremely bearish early this year, and now analysts are already increasing their projections. This makes him worry. Does not expect new lows, but a meaningful correction. (9:28)
Cash is made undesirable by governments/central banks with artificially low interest rates and forcing people to speculate. That's why the big crisis is yet to come. Doesn't think that fiscal deficits will shrink in the US (4:21)