On Wednesday, Newsmax talked about investment legend Marc Faber and what investors should do once the bailout is passed by the U.S. government. From the piece:

Rescuing the U.S. financial system won’t stave off a recession, and if equity prices rebound after Congress passes a rescue package, investors should sell.

So says Marc Faber, a Swiss fund manager and publisher of the Gloom Boom & Doom Report.

“A bailout will not buy the U.S. a way out,” Faber told Business Intelligence. “The government is less powerful than markets in fixing this mess.”

Faber says a post-bill rebound will not lead to “new highs” for stock markets.

“We live in very uncertain times and nobody knows the extent of the damage from the slowdown of credit growth,” Faber says. “It will be good to diversify.”

The Swiss-born fund manager believes that investors should pay attention to the U.S. dollar and physical gold. According to Newsmax:

Faber believes that the U.S. dollar will continue to find support as investors continue to depart equity markets. He considers gold to be “a relatively good investment under any kind of scenario until the U.S. government stops its citizens from buying and owning it.

Investors should make sure to buy the precious metal in physical form, Faber says, not through gold funds.

Source:

“Faber: If Market Rallies After Bailout, Sell”
Newsmax, October 1, 2008

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