Marc Faber is famous for his bearish outlook on US stocks and has been nicknamed Dr. Doom for that reason. Surprisingly enough the man is now saying that US large cap stocks are a great place to invest your money.
Faber says he is investor and so he invests. Do I want to buy European government bonds where I am sure to make money, although it won’t be much, or do I want to invest in blue chips? Faber mentioned on an interview with CNBC that he believes that blue chip stocks are better positioned for the next 10 years.
Dr. Doom Is Looking At Europe
Faber would not be Faber, however, if he would not tie something negative to his reasoning. He underlined, furthermore, that US stocks are not the best choice at the moment. Faber feels that the US stock market is a bit pricey at the moment in comparison to the more fairly priced European stocks. Stocks from the emerging markets get his preference.
When it comes to safe large caps, says Faber, you have to look to the US though. Dr. Doom knows where to hide when a disaster would hit the markets: blue chips, since he would lose less money compared to government bonds in his opinion.
All in all the well-known investor is still very bearish on the global stock markets. The man has even gotten more bearish than before, and his move to US stocks should mostly be interpreted as one of safety.
Comments
Log in or sign up to join the conversation.