Faber: Central Banks Will Never Tighten Rates Again
Economist Marc Faber said central banks will never tighten rates again — all they will do is print more money.
For that reason, Faber thinks that cash and long-term bonds are a bad place to hold money.
Equities are an avenue to preserve wealth but are somewhat risky given the effects of rampant currency depreciation, says Faber, the publisher of "The Gloom, Boom & Doom Report."
Faber considers precious metals a sound place for wealth preservation.
Though the United States is still a large economy, it’s not growing, while the growth in the emerging world is — and will continue to be — strong, Faber notes.
“People still think of emerging market economies as poor cousins, but because 80 percent of the world’s people are here, in aggregate the consumption is huge,” he observes.
“Everybody should have 50 percent of their money in the emerging world, outside the West.”
The drivers of growth in the emerging world will be the urbanization of India and China, Faber says. While stocks won’t necessarily rise in the short term, there will be significant growth in Asia in the long run.
However, Faber believes the United States has a huge strategic advantage over China given that "we have access to our own oil, and that of Mexico, Canada, the Middle East and oil off the coast of western Africa.’’
According to the U.S. Energy Information Administration, oil prices will rise to $108 a barrel by 2020 as a global economic rebound boosts demand, The Huffington Post reports. Oil recently traded at $72.23.
“The global economic recession that began in 2007 and continued into 2009 has had a profound impact on world energy demand in the near term,” the EIA said in a statement. “Although the recession appears to have ended, the pace of recovery has been uneven so far.”
Moneynews. All rights reserved.
Economist Marc Faber said central banks will never tighten rates again — all they will do is print more money.
For that reason, Faber thinks that cash and long-term bonds are a bad place to hold money.
Equities are an avenue to preserve wealth but are somewhat risky given the effects of rampant currency depreciation, says Faber, the publisher of "The Gloom, Boom & Doom Report."
Faber considers precious metals a sound place for wealth preservation.
Though the United States is still a large economy, it’s not growing, while the growth in the emerging world is — and will continue to be — strong, Faber notes.
“People still think of emerging market economies as poor cousins, but because 80 percent of the world’s people are here, in aggregate the consumption is huge,” he observes.
“Everybody should have 50 percent of their money in the emerging world, outside the West.”
The drivers of growth in the emerging world will be the urbanization of India and China, Faber says. While stocks won’t necessarily rise in the short term, there will be significant growth in Asia in the long run.
However, Faber believes the United States has a huge strategic advantage over China given that "we have access to our own oil, and that of Mexico, Canada, the Middle East and oil off the coast of western Africa.’’
According to the U.S. Energy Information Administration, oil prices will rise to $108 a barrel by 2020 as a global economic rebound boosts demand, The Huffington Post reports. Oil recently traded at $72.23.
“The global economic recession that began in 2007 and continued into 2009 has had a profound impact on world energy demand in the near term,” the EIA said in a statement. “Although the recession appears to have ended, the pace of recovery has been uneven so far.”
Moneynews. All rights reserved.