Posted on 03/12/2015 12:08:39 PM PDT by Citizen Zed
Marc Faber is well-known for his persistently bearish take on U.S. stocks—as his nickname, Dr. Doom, implies. But now he argues that large-cap American equities could actually be a great spot to keep one's money.
"I'm an investor, and I invest. Do I want to buy European sovereign bonds at a negative yield where I'm sure to lose some money—not a lot of money, but some money? Or do I want to be in some blue chip stocks? If I take a 10-year view, I think I will make more money in blue chip stocks," Faber said Thursday on CNBC's " Futures Now ."
Faber makes it clear that American stocks aren't necessarily the best pick right now. He calls the U.S. market "expensive," in contrast to "reasonably priced" European stocks. And emerging market equities are his preferred pick.
"I think that I will make more money in emerging markets than the U.S. in the next 10 years," he said.
But when it comes to safety, large-cap U.S. names are the place to be, Faber advised.
"I was recently at a dinner, and someone said, 'Where are you going to hide when disaster strikes?' I think in blue chip stocks, you will lose less money than in sovereign bonds," he said.
(Excerpt) Read more at mob.cnbc.com ...
He seems to be saying he will lose less in US stocks than euro bonds with negative yields. Strange statements. Who would invest to get negative yields? Cash would be better.
The article's optimistic title does not really match the rest of the article.
Sure, invest in stocks! No question given stocks have been on a tear. The trick is to pull your money before the house of cards falls.
In ten years we’ll certainly be in the inflation (and most probably hyperinflation) phase of this mess. So sure, Put it in stocks (or PM’s). But not just yet.
He is suggesting we buy 6+ years into the biggest bull market since the 1920’s? The time to buy was in 2009 when pretty much the entire stock market was discounted to fire sale prices. Conceding that the future is unpredictable, history would suggest that all bull markets do come to an end at some point. If 2015 is yet another up year it would be the first time we have had a seven year bull market since before the 1870’s.
Most bearish indicator I have seen this month!
Cash has got to be parked somewhere however. The US is not that far from zero interest rates. Couple that with ever increasing bank fees for the privilege of storing your cash and you can come out with a negative return.
I'm going into the secure mattress business!
It is all relative isn’t it? As crappy as it is here in the US it is crappier almost everywhere else isn’t it?
Places that are in pretty good shape are not big enough to move the dial enough to threaten the status of the US a a reserve currency are they?
And so the debt of the world just continues to go up and default is a relative consideration isn’t it?
Agreed — If Faber says something, it is time to do just the opposite.
Of course I meant electronic cash. :-). Nice pic but that is hardly what I had in mind. Compared to negative yields of course cash is better. But one always spreads their investments among asset classes - stocks, bonds - and only a moron would invest in negative yields.
Personally I am a fan of the Permanent Portfolio. It takes most of the guessing out of investing and lets me sleep at night.
No idea what a permanent portfolio is.
A quick and dirty guide to the Permanent Portfolio...
http://earlyretirementextreme.com/wiki/index.php?title=Permanent_Portfolio
Yes, day by day we who are not invested look like fools, but day by day the valuations just get crazier. I think it might be even more idiotic to jump in. I am amazed how long this crazy train can last.
Nope. You need to read between the lines.
What he’s saying is the US stock market is the only place to make money, maybe.
Of every patient on the ward, the US market only has glioblastoma, and looks pretty good at the moment.
Tomorrow? Who knows.
The real killing needs new blood. Buy. Buy. Buy. Get to it
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