“Gold has been a great performer over almost any asset classes pre- and post-credit crisis and outperforming even Warren Buffett's Berkshire Hataway.”
-- bhc investment
- March 9, stocks to take off for a 6-month rally. [Well done!]
- Stay humble; sometimes the call is easy.
- Gold to $3,000? Well, you have to ask Mr Bernanke. [Gold is the enemy of central banks. Don't expect Gold to be hyperinflated -- it will not happen. Governments hate seeing Gold making too much gains. Be humble with your Gold investment. Gold has been a great performer over almost any asset classes pre- and post-credit crisis and outperforming even Warren Buffett's Berkshire Hataway. We think at some point in the future, it is likely to lag the gains in commodities.]
- Fed chairman should not disregard excessive leverage, excessive credit growth, etc.
- Most economists disregard excessive leverage and excessive credit growth, except John Taylor [1] and Robert Shiller [2]. [Shiller is one of the few economists who identified the housing bubble, while almost nobody will even acknowledge it as a bubble -- the herd mentality was pervasive and I guess many still don't even know who Robert Shiller is. Joseph Stiglitz [9] is another economist who saw it coming and was against the repeal of the Glass-Steagall Act, which allowed the financial criminals to abolish the "regulatory protection" built after the Great Depression, to leverage up like never before leading up to the big crash we had last summer. However, economists who truly knew what's going on weren't given the chance to air their views!]
- Paul Krugman [3] recently published a 6,000-word article criticising how the other economists got it so wrong but never mentioned excessive leverage or excessive credit growth. Krugman should rename the article to "How did I get it so Wrong". [It is economists such as Krugman who get to voice out their crappy, misleading, and erroneous ideas!]
- Faber mentioned David Tice. On 22 September, Tice [4] said the Standard & Poor’s 500 Index will fall below 400 within 18 months, a level it hasn’t reached since 1992 and a 62 percent plunge from yesterday’s close. [David Tice is our hero. S&P to fall below 400? Wow, Tice is bearish indeed. We aren't smart enough to tell you to where it will fall -- our year-end target for the Dow is below 8,000.]
- You can't solve a debt problem with even larger debt, though you can postpone the problem. The ultimate crisis will happen one day.
- The next crisis will bring down the entire capitalistic system.
- They can't unravel the fiscal deficit; monetisation will have to go on.
- Foreign purchases of US government debt has slowed down, or the Dollar will have gone up. Dollar weakness is a symptom of inflation in the system. [Dollar weakness isn't really started in earnest yet ladies and gentlemen. When the US bond markets begin to tank, that's when the real Dollar crisis begins!]
- Indian central bank, probably the only central bank Faber has respect for.
- The emerging world is no longer the poor cousin of the rich countries; they are now an economic power.
- Thailand is probably the cheapest. India and Vietnam are very attractive. Cambodia too on a smaller scale.
- Cash and government bonds may just be the worst investment over the long run.
- Oil and drugs companies are not expensive.
- One day the government will fail.
- S&P 500: Expect a lot of volatility; 1,250 ~ 800.
“Dollar weakness isn't really started in earnest yet ladies and gentlemen. When the US bond markets begin to tank, that's when the real Dollar crisis begins!”
-- bhc investment
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References:
- John B. Taylor
- Robert Shiller
- Paul Krugman
- Stocks Rally Will End Within Six Months, Tice Says (Update2)
- Inflation to Cause Stocks to Outperform Cash, Bonds, Faber Says
- Global Wealth Destruction as Gold Rises
- Global Wealth Destruction as Gold Rises, Part II
- Global Wealth Destruction as Gold Rises, Part III
- Stiglitz: The Man Who Predicted It All
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