Legendary investor Dr. Marc Faber of the Boom Gloom and Doom Report recently spoke with CNBC and delivered a particularly stark warning to investors.
Question: “Do you think that negative yields in the US are a foregone conclusion?”
Marc Faber: “I doubt that because I think that the dollar, considering everything that is happening in Europe, they dollar is not that strong. So the market may be pricing in some dollar weakness. I mean isn’t it unusual that you have 10-Year US treasury notes at a higher yield than Spanish and Italian bonds. I mean for me it’s incredible, but this is the mispricing that is occurring because of manipulations of central banks.”
Question: “How weak do you see the dollar going?”
Marc Faber: “I Personally, I think the dollar will go down, but it also depends against what. All paper currencies are doomed. They are going to become worthless because of money printing. In other words, their purchasing power will continue to diminish, as it has diminished for the last 100 years. But the dollar in my view will go down against gold and silver and platinum.”
Question: “You said that the S&P 500, the markets here in the US, are fully priced. Does that mean that they are a short here or will they just continue to go sideways?”
Marc Faber: “I hate to short assets in a money printing environment and I would just like to reminder you, the Nasdaq was grossly overpriced in December 1999 and its still went up 30% until March 21st 2000, and then it collapsed. So in this environment, I am very reluctant to be heavily short. But I just don’t see a lot of value except as I mentioned to you in mining companies and I see some value in agricultural stocks and in oil servicing companies.”.
There is more, so enjoy the full interview below: