With the valuation of stocks soaring and the United States dollar reaching a 14-year high, one contrarian investor believes everything is too high to invest in. Although he doesn’t think a market crash will soon happen, he does recommend investors to start buying gold and silver.
Speaking in an interview with the Fox Business Network, Marc Faber, the editor and publisher of the Gloom, Boom & Doom report, says that he fears both the greenback and U.S. stocks, while remaining optimistic about precious metals.
“If you look at the money flows in the last few weeks, a lot of money has flown into U.S. equities, flows from the Mexican investors and international investors. As a contrarian, this is not a particularly good sign,” he explained. “However, there is a lot of liquidity in the world and I believe that whatever you think, the liquidity will move into precious metals in the next three to six months.”
His bearishness on U.S. stocks and the dollar has ultimately led him to be bullish on gold and silver. He told the business news network that it is time for investors to begin adding precious metals to their portfolio as a long-term position.
“I would be long gold shares, silver shares, platinum,” he said.
Gold has started off 2017 strong. Not only has it surpassed the important $1,200 threshold, the yellow metal is also up six percent year-to-date.
Anything else aside from precious metals? According to Faber, now would be an opportune time to start purchasing Treasury bonds since there is too much pessimism surrounding the bond market.
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