Final stages of a global bubble: Marc Faber
Source: DNA Money
Marc Faber, the investment guru who predicted the US stock market crash in 1987, says that the markets are in the “final stages of a bubble” and recommended investment in farm land and “assets that are depressed”
Faber, who oversees $300 million in assets at Marc Faber Ltd, told Bloomberg Television in an interview in Zurich: “I think we are in final stages of a bubble, but that final stage can be very steep as we noticed with the Nasdaq in 99 and early 2000.”
The editor and publisher of Gloom Boom and Doom Report said, “unlike the previous investment manias, we actually have bubbles everywhere. We have bubbles in real estate, in equities, in bonds, in commodities, in art prices and totally useless collectibles. So, this bubble is huge and includes just about any asset in the world.”
Since the earlier bubbles were concentrated on a few sectors, when they burst only those sectors were affected.
“From 1921 to 1929, the bubble was concentrated in US equities, and in the 19th century, in canal shares or in rail-road shares or banking shares. In the 70s, it was in gold and silver, in the 80s it was Japanese and Taiwanese shares, in the 90s, it was in one sector TMT (technology media telecommunications). Now there is a bubble everywhere,” he said.
“Now, if all the bubbles burst, you can imagine what will happen to the global economy. And for sure, it will end up very badly. But it’s tough to put a finger and say that it is going to happen tomorrow or in three months or in six months,” he said.
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Labels: Bear, Marc Faber
