Monday, May 7, 2012

Marc Faber : You have to be diversified in Your Assets

Marc Faber : I tell everyone that you have to be diversified in your assets. The risk of gold is that it doesn’t generate a cash flow. So assuming you had all of your money in physical gold, and it goes down, it’s going to be difficult to save your position. If you have a diversified portfolio and you have some physical gold and you have some fixed-interest securities and high-dividend shares and some real estate properties that provide you with some income, then if assets go down, you have at least have cash flow for reinvestment purposes. I am a cash-flow person and I have a large, physical-gold position. I keep on buying a little bit of gold every month. I want to increase my allocation to gold. But I think there is a chance that before gold really takes off towards the upside again, that we have one more move on the downside. I wouldn’t rule it out. - in Seeking Alpha


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