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”.

2 thoughts on “Faber: Dump Bonds, Buy Stocks

  1. Marc Faber aka Dr. Doom has a knack for calling major falls. If he says get out of bonds, it is definitely the move to make. Faber also sees the possibility of rising interest rates, which seems plausible after Yellen’s comments this afternoon. It seems more likely than not that rising interest rates are in our near future. Here is a scenario of what rising interest rates would look like. Check it
    Rising Interest Rates

    http://www.hiddenlevers.com/hl/u?aAxJCc

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