Marc Faber Sees Asset Price Correction, Dollar Rally, China Gloom (UUP, SPY, FXI)

Marc Faber, author of the Gloom Boom and Doom Report, was on Bloomberg on 10/26/2010. He said if QE2 (quantitative easing 2) is less than $1 trillion it could correct asset markets (stocks, commodities and precious metals) and rally the US Dollar (USDX, USD/JPY). However, Faber doesn't believe the bull market in stocks and commodities is over. In the long run he likes stocks over U.S. Government Bonds and cash (courtesy of Fed quantitative easing or the "economic put").

In the second segment Faber was gloomy on the Chinese economy. He said economic imbalances, capital flows, artificially low interest rates (credit growth), the property price boom and rising inflation (example corn/cotton) will slow down the economy. Marc Faber joined short seller Jim Chanos. If Chanos is right and the Chinese credit bubble pops, will the People's Bank of China (PBOC) just print money, backstop losses and buy assets to avert a crisis?

Marc Faber on Bloomberg TV with Margaret Brennan on 10/26/2010 after the jump.



Source: Bloomberg

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