MARC FABER

MARC FABER

Saturday, June 15, 2013

Marc Faber : Interest Rates may stay low

TGR: What factor will determine whether or not bonds decline?

Marc Faber : The performance of the global economy. It is obviously not performing well at the present time. And for that reason, interest rates may stay low. I want to make one thing very clear: Interest rates will one day be higher than they are now. The question is when? This year? In five years? But the sentiment around bonds remains negative, while bullish for stocks. Holding bonds for a while is not a bad tactic: If there is a serious correction in the stock market, or a bear market in stocks emerges, the psychology driving investors could change from an inflationary psychology to a deflationary psychology.

The current 10-year U.S. Treasury yield of 1.7% is not attractive. It would be attractive with a deflationary bump. But then only for a year or two because tax revenues would collapse and more money would be printed and inflation would rebound. I am not recommending that people buy U.S. government bonds: I do not buy them. I am simply advancing an argument about why they may not collapse tomorrow. Personally, I stick with corporate bonds. - in goldseek
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Dr. Marc Faber Tomorrow's Gold







Dr. Marc Faber author of the Gloom, Boom and Doom report is a world class Investor, Doctor Faber 's typically controversial and contrarian views have earned him the label of Dr. Doom. Doctor Doom also trades currencies and commodity futures like Gold Natural Gas and Crude Oil.Even his harshest critics must admit that he's been unerringly correct in his market forecasts over the past three decades . Marc Faber is a Swiss investor.He was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.