Wednesday, December 23, 2015

Marc Faber : U.S. Bonds look relatively inexpensive, so I bought some 10-year Treasurys

Marc Faber : Around the world, there is still opportunity in real estate. Not at the highest end. For example, in Los Angeles, some areas like Beverly Hills are very pricey. Young people can't go and live there; it's out of the question.

But they can go and live in East Los Angeles, which is developing very rapidly, having previously been a dilapidated area. That’s happening over in other cities such as Berlin, Frankfurt, Munich and Zurich. If I lived in those areas, I would probably invest some money in real estate.
In Asia, we have huge wealth in Japan, South Korea and Taiwan. We have developing countries with very low GDP per capita, as low as $1,000 per annum in Laos, Cambodia, Vietnam, Myanmar. These are regions that will also have rising real estate markets over time. It's is very regional and fragmented, but there are opportunities.
No. 2, look at the yields of European bonds compared with U.S. bonds. I see France yielding 0.97% on the 10-year, Germany yielding 0.63%, Italy yielding 1.68% and the U.S. 10-year yielding 2.26%. What would you rather own? A 10-year U.S. Treasury or Italian bonds?
The central banks have distorted any price mechanism. But in this environment of distorted prices, you can say something is relatively inexpensive and something is relatively expensive. U.S. bonds look relatively inexpensive, so I bought some 10-year Treasurys.  

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.