Marc Faber appeared on CNBC this morning and said that a “very strong” rebound in asset markets was possible within the next 3 months. The Swiss-born investment adviser and fund manager told viewers:

Well, I think we have reached extreme points in the sense that asset markets are, by and large terribly oversold, whether these are gold mining shares, or commodities, or equities. On the other hand, we have an overbought U.S. dollar and overbought U.S. Treasury bonds. So I think that volatility will continue. But what you could get within the next 3 months is a very strong rebound in asset markets, in equities, and a sell-off in bonds, and eventually a selloff in the dollar.

In the meantime, the editor of the monthly investment newsletter The Gloom Boom & Doom Report is partial to gold. Dr. Faber said:

I still like gold simply because it’s a cash that is not the liability of someone else. What disturbs me a little bit about gold, near-term, is that it’s one of the few assets that has held up very well. And, if you get a very strong rebound in equity markets it is conceivable that people will then sell assets that have held up well and part their money in distressed assets. In other words, in U.S. stocks, in emerging market stocks, and ? There’s one sector in the gold sector which has sold off very dramatically. These are gold mining exploration companies. They are at extremely depressed levels, and I would imagine that even if the gold price went down somewhat, these exploration companies could actually rally.

You can watch the 10 minute 49 second interview here.

Source:

Marc Faber Interview
CNBC, November 21, 2008

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