Global Assets Poised For BIG Correction

[Dover]

Global Assets Poised For BIG Correction

AGENCIES- TUESDAY, JANUARY 09, 2007

MANILA: Marc Faber, who predicted the US stock market crash in 1987, said global assets are set for a “severe correction” and says it’s time to sell. “In the next few months, we could get a severe correction in all asset markets,” Faber said in an interview in New York. “In a selling panic you should buy, but in the buying mania that we have now the wisest course of action is to liquidate.”

Faber, founder and managing director of Hong Kong-based Marc Faber Ltd, advised investors to buy gold in 2001, which has since more than doubled. His company manages about $300 million in assets.

The bullish outlook of traders in everything from bonds, equities and commodities to real estate and art suggests valuations are peaking, Faber said. Last year, the Morgan Stanley Capital International World Index of developed stock markets jumped 18%, while a survey of Wall Street’s biggest bond-trading firms predicted US Treasuries will post the best gains in five years during 2007.

“I am not a great buyer of assets now,” Faber said. “We may be in a situation where consumer-price inflation comes back and will have a negative impact on the valuation of assets.”

Faber, publisher of the Gloom, Boom & Doom Report, does have some favourites. Singapore and Vietnam are his top picks in Asia because stocks in Singapore aren’t “terribly expensive compared to interest rates” in the city-state, while Vietnam’s equities have “incredible potential in the long run..cont'd

http://economictimes.indiatimes.com/Markets/Stocks/Global_assets_poised_for_a_big_correction/articleshow/1102194.cms

[Jackpine Radical]

1. Maybe time to buy some of the Bear.

K&R

[Robbien]

2. Gloom, Boom & Doom Report?

Dewey, Cheetum and How?


 

 

 

 

:evilgrin:
sorry couldn't resist

[Tiberius]

3. Lord, who knows

I've been putting my 401k entirely into foreign funds, only based on the fact that I think America is a waning power. Made a 30% return last year. As long as the dollar gets weaker, won't foreign assets be the way to go?

[Robbien]

6. The advice appears as reasonable as any other

but whomever chose the name should be kicked to the curb.

"Gloom, Boom & Doom Report" :shrug:

[ShockediSay]

4. Invest in Viet Nam? Great! Maybe in 40 yrs we can in invest in Iraq nt

[Dover]

5. Well that was/is the point isn't it?

Viet Nam's own Mall of America? McDonalds?

Shop in peace.