Saturday, August 17, 2013

Marc Faber : A Deflationary Bust may Happen in Ten Years

MARC FABER : A Deflationary Bust whenever it may happen it may happen only in ten years time but it seems to me that this is the eventual outcome it could also happen tomorrow , it could happen in ten years time , is the opposite from an increase in asset prices , from inflation , now if you look at how asset prices have increased since 1980 it's been highly irregular , stocks rose strongly until 87 then they had a set back and after 87 some markets made new highs but others didn't and then you had some regions like America doing particularly well between 1988 and 1994 , so growth shifts around and asset prices rise but with different intensity , and we had a collapse in the NASDAQ but other stocks continued to go up until 2007 whereas the NSDAQ was still 50 percent below its high and is still even today below 40 percent of its high in 2000 and so in a collapse I think what happens is overtime everything goes down but something go down more than others and traditionally I would say the best in the collapse is to hold cash , but then the question rises what kind of cash you should hold and in what form because if you have bank deposits , and I think what happened in Cyprus is a blueprint may be you have bank deposits may be not all of it will be paid to you , in some sovereign countries may be it will be paid to you and in others may be not depending on the quality of the banking system , but in general I would say if there is a collapse all banks will suffer and then I would imagine that cash would not be necessarily the safest investment .....
- in the latest interview with the Prospect Group
Click here to watch the full Interview>>>>>>

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.


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