Saturday, March 14, 2015

Marc Faber Recommends US Blue Chip Stocks for The Next 10 Years



"I'm an investor, and I invest. Do I want to buy European sovereign bonds at a negative yield where I'm sure to lose some money—not a lot of money, but some money? Or do I want to be in some blue chip stocks? If I take a 10-year view, I think I will make more money in blue chip stocks," Faber said Thursday on CNBC's "Futures Now."

Faber makes it clear that American stocks aren't necessarily the best pick right now. He calls the U.S. market "expensive," in contrast to "reasonably priced" European stocks. And emerging market equities are his preferred pick.

"I think that I will make more money in emerging markets than the U.S. in the next 10 years," he said.

But when it comes to safety, large-cap U.S. names are the place to be, Faber advised.

"I was recently at a dinner, and someone said, 'Where are you going to hide when disaster strikes?' I think in blue chip stocks, you will lose less money than in sovereign bonds," he said.

Faber, then, is merely taking his bearish thesis about global assets to its logical extension, by reasoning that in a serious meltdown, richly priced fixed income equities are liable to lose more value than big stocks.

In other words, this is not a turnaround for the investor after his years of issuing dire warnings about the market.

"Actually, I have to tell you, I'm even more bearish that I was at the time!"




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.

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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.