Marc Faber readies for hyperinflation, dollar’s demise and civil unrest:
1. Avoid Treasurys “It’s a suicidal investment to own 10-year or 30-year U.S. Treasurys,” Faber said. What about the Treasury rally in the wake of economic weakness, stormy stock markets and investors’ flight to safe havens? “What does a weak economy mean?” Faber said. “It means collapsing tax revenues. The deficits go up. You have to issue more government bonds.”
2. Cash is trash. Given his bleak assessment of the U.S. dollar, it’s no surprise that Faber doesn’t recommend holding cash as a long-term cushion against portfolio shocks.
3. Stocks offer some safety “I am not completely bearish about stocks,” Faber said. “If I have cash, government bonds and stocks, for the long term, I’d take stocks……”
Find out more at http://www.marketwatch.com/story/5-money-moves-dr-doom-is-making-now-2011-08-18
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