Wikinvest Wire

Marc Faber likes gold, oil, mining stocks

Tuesday, December 23, 2008

One of the many Dr. Dooms these days, this one the author of the "Gloom, Boom, and Doom Report", Dr. Marc Faber thinks 2009 is going to be an "economic catastrophe" and favors gold, oil, and mining stocks.

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He starts out by describing how the bailout of Long Term Capital Management in 1998 led to the current financial crises, blames the Federal Reserve, identifies the U.S. Treasury as the biggest bubble of them all, and then moves on to many other topics.

Here's the summary from Bloomberg:
00:00 Forecasts economic catastrophe next year
01:14 Government bailouts, prefers doing nothing
03:17 U.S. treasuries, sees markets drifting lower
06:03 Chinese stocks, sees fluctuations in prices
06:56 Sees "bad" recession in China, equity outlook
07:45 Favors gold, gold miners, oil, BHP, Rio, Vale
08:34 Madoff, regulation, says SEC "fell asleep"
10:16 Calls for more accountancy regulation in U.S.
11:26 Sees volatility, S&P, dollar "disastrous"
On where to put money in the year ahead:
I continue to like gold and, at the present time, what is very depressed compared to physical gold are gold miners - the exploration companies. I would also say that oil at around this level is becoming attractive and oil companies are reasonably attractive, so these are the investments I would carry out at the present time. And the big mining companies - CVRD, Rio Tinto, BHP, and larger gold producing companies like Newmont and also Barrick.


dearieme said...

"He starts out by describing how the bailout of Long Term Capital Management in 1998 led to the current financial crises..": I was watching Niall Ferguson's "The Ascent of Money" last night (Channel 4, UK) and he gave LTCM a lot of attention too.

Anonymous said...

He is 100% right. If would be only US and its play, I would expect a total suppression of the gold. At this time there are too many players to be convinced to sacrifice all, in order to save US$ based international financial system. The question is who is going to leave first, because all the others are going to follow fast. The only alternative for broken paper currency systems is a historical verified one, GOLD.

Anthony J. Alfidi said...

Oil may look attractive, but huge global demand destruction will keep it down. Unless of course some unforeseeable geopolitical event makes oil suddenly scarce.

Anonymous said...

Deflation, Reflation, Inflation, OR ALL THREE is the title of the new post at

Check out the article as these guys outline why they think inflation is on the way and how the deflation in prices that we have seen lately is going to actually contribute to inflation in the near future. This post is not what I wanted to hear, but it made me think.

These guys interviewed Jim Rogers a couple of times and he and Faber seem to both like gold.

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