Marc Faber notes liquidity squeeze depressing stocks but still buying gold
By: Peter Cooper
GoldSeek.com
Thursday, 20 June 2013
The global liquidity squeeze, either due to central banks losing control of their bond markets or actively trying to pull back on money printing, can only have one impact on equity markets and that is negative.
That’s what legendary investment adviser Dr. Marc Faber told CNBC yesterday (click here). It’s a point that many Wall Street shills miss in their analysis.
Liquidity drying up
The money flow is drying up and so the upward pressure on equities has not only gone but is thrown into reverse. Just look at how markets responded to Ben Bernanke’s talk about tapering QE yesterday. It’s worst in the emerging markets but the advanced markets are also falling
But Dr. Faber says he is personally buying gold stocks and physical gold because both of these asset classes are so deeply out of favor. He is also keen on US bonds, presumably because they tend to do well as equity markets sell off.
The Rest…HERE
