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Gloom, Boom & Doom Report Editor Marc Faber on the outlook for the market and economy.
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Has really been -- -- here from when it bottomed in early June look at this to where it is now.
It's up about 10% -- just two months and even though our next guest is is breathing doom and gloom about this bubble getting ready to pop is still holding stocks mark faith proper -- and who has good report he joins us now.
In a Fox Business exclusive report we've had here Wofford for me to -- -- -- -- Saturday -- rankings are all right how much longer this is as a key question is as every good how much longer can stocks do well.
When our economy is struggling.
Good question as long last you -- needs money.
Asset prices will go up -- you will have negative real interest rates.
So to hold cash is dangerous bonds are relatively unattractive.
So I think that stocks may still go up somewhat.
I think a lot of Q -- street.
And off the buying by ideas the ECB oath while he's -- Europe is has been discounted by the market.
But ER BQE -- announced -- stocks could rally may be another 345%.
And then they will be these appointments.
So I think that sometimes in the next six months you can buy pretty much everything 20% cheaper than right now it's such runs at present is nothing.
If you can't take had -- draft of 20% in asset markets.
What its gold or copper or real estate or equities they don't get -- in the morning.
They inbred how was how was this decline likely -- happen is gonna happen in in a short period of time is it gonna happen gradually over the next couple of months.
I also on the because an 87.
I predicted the crash I didn't know it would happen one week -- I've predicted eight.
And so things can happen very quickly and -- seen any another October pressure on the horizon.
I don't safe but he could happen.
So that's why I recommend people who have risen seals of bonds and cash and -- holds some I gold.
I mean we were at most of these people he had to talk about dividend yields.
You know what could also happen is that corporate profits disappoint more than he's expected.
And that some dividends will be caught.
And if I like derivatives and I'd value since the Asian shares because they have a dividend yield of say 67%.
Do you ever play in the European more bond market I mean -- these these bonds going up and down why -- like somebody's making somebody -- yes.
But for the first time in my life story for months ago I start to -- by European stocks.
And before you had bad guests who was talking about David and share his -- bolt.
Telecom companies and high dividend yield stocks in Portugal.
In Spain eight -- and a -- I think Europe is -- -- -- economically.
But -- understand it's not important what is good -- -- what is important is the price.
At which you -- -- assets.
And yes and -- today is that over 14100.
Lou we're at 666.
March.
62009.
In Europe many markets 34 months ago where acts or below the 2009.
New lows.
Sold relatively speaking they were very very cheap now they're at 830%.
Now I'm staying on the sidelines but if they drop against a 20% that will increase the position backed Citi original point though when you have ephedra is Central Bank yes printing money he would try to keep slow economy moving.
An economy which may be not moving at all with the work for -- right that is direct isn't that by almost by definition a bubble and -- bubbles.
By definition going to burst.
Yes but the peak Bobble may actually not be -- with the -- that he could topple he's probably.
In fiscal deficits.
-- -- these artificially low interest rates the government has no problem to finance its deficits and believe me.
Whether the Republicans who will be in the White House and XT OMR Obama the deficit as far as the I can see we'll stay above a trillion dollars.
Nobody will really nobody can really cut.
And being meaningfully particularly as long as the government can borrow at zero interest rate precisely.
So that they can grow and grow and grow and government stake is the most unproductive state.
-- you borrow to buy machinery and to build the factory after been producing borrowing for assets.
Eat eat -- you borrow to generate cash flow and consumer credit and government credit is the worst type of borrowing you can have so how is the United States bubble -- the bubble of the government debt likely to bust need to move the whole system will collapse -- one -- globally.
Spot between now and then maybe stocks can go up the battle could go to a 100000 go to a million depending when I'm ultimately because there's no other place to put your cash for -- return they say in the US now are real estate didn't some areas is very cheap not -- -- in New York where send to out just sold these comb -- for AT eight million US bright -- -- young.
A Condo that would cost more than a million US was unthinkable.
Are you still buying real estate in places like Nevada for example.
I'm not because I'm a foreigner but I can tell you -- -- were an American I would spend all my time back.
Buying up properties in Georgia.
-- that -- is though not in -- debt.
In Nevada and -- -- you have a lot of properties that are inexpensive and still in Kazakhstan -- Yes I like Kazakhstan this is a country that should have a highly accredited -- and and the US they have a fiscal separate us.
-- have a current account surplus to have a trade surplus and the breakthrough GDP -- percent to Marc Faber gloom boom and doom he's mentioned at all on this particular visit thank you very much great our studio.
