Author of the popular financial magazine Gloom, Boom & Doom Report predicts drop in S & P 500 index by 50% in the near future and offers investors pay attention to Treasuries - for AMarkets materials.
Rally in the stock market has been made possible thanks to ultrasoft monetary policy of central banks, which helped deliver hot liquidity flows. This created an illusion of economic activity.Bubbly, simply put, that is not correlated with the state of affairs in the real economy. Faber believes that until the collapse of the bubble remains very little time. Market fell by at least 50%, and will fall to 1100 by cutting off the income earned in five years.
The portfolio is now Faber still has shares - about 40% of the portfolio. The rest - the bonds of developing countries, and precious metals. Gold and silver have earned this year 25% and 41%, respectively. For Treasuries in 2016, too, is very good. And Faber recommends investors to buy the sovereign bonds of the United States. For example, 10-year notes with a rate of return 1.58% - quite bargain - so says the expert. This is much better than, for example, Swiss, Japanese bonds, or simply currency.