Marc Faber: Buy Commodities To Hedge Against Coming Crisis, War
Marc Faber, aka “Doctor Doom,” said some scary things yesterday at a conference in the Far East. From Singapore’s Channel News Asia website today:
Marc Faber – the man commonly referred to as Dr Doom by the investment community – said that the real financial crisis has yet to come for the global economy.
Speaking at a conference in Singapore on Wednesday, he said there will be another big bust stemming from credit expansion.
Mr Faber, author of the Gloom, Boom & Doom Report and famed for his bearish and contrarian views, is bullish about commodities and gold.
Mr Faber said: “The crisis has not solved anything. On the contrary there is less transparency today than there was before. The government’s balance sheet is expanding, and the abuses that have led to the one cause of the crisis have continued.”
“I think eventually there will be a big bust and then the whole credit expansion will come to an end. But before that happens, they will print money, and they will grow into very high inflation rate, and the economy will not respond.”
“The average family will be hurt by that, and then in order to distract the attention of the people, the governments will go to war. People ask me against whom? Well, they will invent an enemy.”
The Swiss-born investment adviser informed conference attendees they should look to hard assets as a safe haven. From the piece:
Despite the gloom, Dr Faber is upbeat about commodities in the long term because of competition for natural resources.
“At some stage, somewhere in future, we will have a war – that you have to be prepared for. And during war times, commodities go up strongly,” said Mr Faber.
“If you want to hedge against war, you don’t want to own derivatives in UBS and AIG, but you have to own them physically, like farmland and agricultural commodities. That is something to consider for you as a personal safety and hedge. You have to own some commodities,” he added.
Source:
“World economy setting itself up for a bigger bust, says Marc Faber”
ChannelNewsAsia.com (Singapore), November 19, 2009
