While Marc Faber isn’t bearish on global stocks, the Swiss investor is looking to other areas of the market for a place to make money: Gold and U.S. government debt.
“[Gold] been a very good investment since 1999,” Faber told the FOX Business Network’s Trish Regan. “[It’s] much better than the S&P 500 and much better than tech stocks in the U.S. Certainly over the last six months nobody can accuse me of having been wrong to buy gold.”
Faber, who is the publisher of “The Boom, Gloom & Doom Report,” also recommended buying Treasury bonds, despite a recent plunge in the yield after last week’s Brexit vote.
He also said he is certain there will be more quantitative easing from the Federal Reserve, in part due to the U.S. presidential election.
“Both candidates for the presidency will increase the deficit meaningfully,” he remarked. “And that will require the Fed to buy more paper that is issued by the Treasury.” He added, “in the long run, most governments in the Western world, if they had to account like a corporation, would be bankrupt. And so more money printing will become a necessity.”