Sunday, April 5, 2015

Diversification is the ideal remedy for Market Uncertainty

Marc Faber believes the PBoC may have accumulated thousands of tons of gold bullion reserves, many fold the official figure, in anticipation of a gold backed Yuan / renminbi. China boasts the most trading partners of any nation, 124, making a sound and readily acceptable currency, an essential ingredient for global expansion. The modus operandi includes a gradual weakening of the Yuan, to the benefit of the manufacturing and exporting sectors, followed by the introduction of a gold backed currency. En passant, the Yuan devaluation will be offset by the increased value of the massive PBoC gold stockpile. Although the domestic equities market has performed exceptionally well in the wake of the 2008 credit crisis, shares have reached frothy levels. Dr. Faber expects emerging markets to outperform US equities, presenting an opportunity for wise investors to reap rewards via foreign shares. The trend of domestic corporate share buybacks is emblematic of an equities market bubble. Diversification is the ideal remedy for market uncertainty / volatility. Dr. Faber distributes his funds among cash, real estate, stocks, bonds and precious metals (25%). Eventually, investors could be vilified for their gold investment related, windfall profits, becoming the target of officials, burdened by sagging tax revenues and unpayable debts. Therefore, it is advisable to relocate gold investments in safe havens located in Asia, outside the jurisdiction of potentially unscrupulous officials.- in Goldseek Radio

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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