Faber: Dump Bonds, Buy Stocks
While saying he’s “ultra-bearish on everything”, Marc Faber — who predicted the 1987 market crash and turned bearish shortly before the 2007-09 bear market began — says investors should sell cash and bonds and buy stocks.
“Instead of interest rates going down, they could start to go up, instead of the dollar being weak, it could strengthen,” Faber said during a forum in South Korea, Bloomberg reports. “I’m ultra-bearish on everything, but I believe you’ll be better off owning shares than government bonds.”
Faber’s reasoning: Governments are printing too much money, which could create another credit bubble. He also says global markets are coming to an “important turning point”.