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Marc Faber Wants You to Buy a Machine Gun
Posted by Adam English on the Wealth Wire – Thursday, November 8th, 2012
Marc Faber, legendary bearish investor and head of the Gloom, Boom & Doom report sat down and talked with Bloomberg TV to discuss the aftermath of the Presidential election.
He was quite surprised that there was only a 2% ot 3% drop across the board during Wednesday’s trading hours. In the long-term, he sees the market slowly reacting to the implications of a second Obama term:
“I think Mr Obama is a disaster for business, is a disaster for the United States. Not that Mr. Romney would be much better, but I think the Republicans, they understand the problems of excessive debt better than Mr. Obama, who basically does not care about piling up debt. And you also have, in the background, Mr. Bernanke that with artificially low interest rates enables the debt to escalate endlessly.”
From recent highs, the S&P 500 and the broader market will drop at least 20% over the next six to nine months in Mr. Faber’s view. In the short term, the market will rally in January, as it historically does every year.
“It is difficult to tell where the market will go because we have so much manipulation, but as I said, I think minimum will drop 20%.”
The conversation turned to advice investors can use to protect themselves and their wealth:
“I think they should buy themselves a gun, a machine gun… I need to buy a tank. Joke aside, look: We have manipulated markets. Whenever you manipulate markets, you will get unintended consequences. I think the reelection of Obama is an unintended consequence of money printing that favors, essentially the so called– I wouldn’t even call them the 1% – the so-called quarter of a percent.
More here: http://www.wealthwire.com/news/economy/4128?r=1
Video here: http://www.bloomberg.com/video/obama-is-very-negative-for-economy-faber-says-e6G4uAjSTQaev_s0unVqtQ.html
