Note: I am not an investment advisor and nothing I state should be taken as investment advice. Please consult your own private professional financial advisor for help in making investment decisions
Marc Faber is back in the news. Who is Marc Faber? He's the author of the 'Gloom, Boom, Doom Report.' On March 9th, 2009, the S&P 500 hit a 12-year low. On that day, Faber predicted stocks would rally thanks to government stimulus money being pumped into the economy. Since then, the S&P 500 has rallied 55%.
Faber is back in the news today, making the following assertions:
*Stocks have likely peaked for the year and will probably face a 20% correction.
*Faber prefers emerging markets. The Asian economies will continue to grow despite the financial mess in the West.
*Fiscal and monetary stimulus measures have only delayed an inevitable crisis instead of preventing it.
*“The next stage is for total breakdown of the financial system and for an economic and financial crisis that will bankrupt governments.” -Faber
*Gold will face a correction along with equities. Faber "wouldn't be surprised" to see gold settle at $920 an ounce. However, Faber does not plan on selling his holdings in gold.
*Despite being an ultimately doomed currency, the U.S. Dollar is likely to rally amid deflation concerns.