Gold to $3,000? Well, you have to ask Mr Bernanke
- March 9, stocks to take off for a 6-month rally.
- Stay humble; sometimes the call is easy.
- We might have seen a major low. The real question: will this low be altered in real terms (against Gold).
- Gold to $3,000? Well, you have to ask Mr Bernanke.
- Fed chairman should not disregard excessive leverage, excessive credit growth, etc.
- 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".
- 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.
- 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.
- 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.
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