Legendary investor Marc Faber appeared live in CNBC’s Hong Kong studios earlier today. Faber, who predicted the October 1987 U.S. stock market crash and the current financial crisis, talked about his U.S. investment outlook. Notable excerpts from the interview included:

I think we may go to 950 on the S&P to a thousand, up another 10%. But I’d like to emphasize one point. I believe that we’ve moved into an environment of very high volatility where you will have up and down moves of like 20 percent all the time and that is a traders’ market…

I think gold may continue to outperform…

I think it’s very difficult to make any predictions for the longer term…

I believe the economy next year is going to be a total disaster… A lot of cyclical industries are going to be hurt very badly next year. Next year we’ll have a wave of bankruptcies…

I think The Warren Buffett approach is dead, and it’s been dead for ten years, and it’s going to be dead for another ten years. We’re moving into very high volatility, big swings in all markets. And for the average investor it will be difficult to navigate between the different asset classes, say equities, commodities, and currencies, and interest rates, because they may get the one or the other thing right…

We can have huge rebounds and then huge downturns again and I think the best for the average investor is to play it relatively in small amounts and not gear up and take big risks.

You can view the 3 minute 52 second interview here.

Source:

Marc Faber Interview
CNBC, December 1, 2008

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