Thursday, February 19, 2015
These are The Mining Stocks that Faber recommends...
Barron’s: Where in the world should we invest this year, Marc?
Marc Faber : If I could find a way to short central banks, that is what I would do. This is the year that people will lose confidence in central banks, mostly because of the failure of Abenomics in Japan. [Abenomics, the economic policies advocated by Japanese Prime Minister Shinzo Abe to reignite Japan’s economy, encompass monetary easing, fiscal stimulus, and structural reforms.] One way to short central banks is to go long gold. I recommend buying physical gold, silver, and platinum. If you are looking for bigger gains, I suggest either mining-company stocks or the Market Vectors Junior Gold Miners [GDXJ] exchange-traded fund. In last year’s first half, when gold rebounded by 15%, the Junior Gold Miners ETF rallied by more than 40%
Secondly, the U.S. market is expensive. Yet, the whole world seems to think it is the only game in town. That suggests it may be vulnerable to a selloff. I hate to short individual stocks because an activist could step in and send a stock soaring. Instead, I would short the SOX, or Philadelphia Semiconductor Index, through the iShares PHLX Semiconductor ETF [SOXX]. I would also short the Global X Social Media ETF [SOCL] and the iShares Nasdaq Biotechnology ETF [IBB].
While people think U.S. stocks are the only game in town, U.S. bonds are still attractive. Can someone on this panel explain to me why investors are bullish on the dollar, yet buy low-yielding European bonds instead of U.S. bonds? The market doesn’t believe the dollar will stay strong.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.