This is what the Gurus have to say.
Marc Faber: Dump Bonds, Buy Stocks
While saying he’s “ultra-bearish on everything”, Marc Faber
— who predicted the 1987 market crash and turned bearish shortly before the 2007-09
bear market began — says investors should sell cash and bonds and buy stocks.
“Instead of interest rates going down, they could start to
go up, instead of the dollar being weak, it could strengthen,” Faber said
during a forum in South
Korea, Bloomberg reports. “I’m ultra-bearish
on everything, but I believe you’ll be better off owning shares than government
bonds.”
Faber’s reasoning: Governments are printing too much money, which
could create another credit bubble. He also says global markets are coming to
an “important turning point”.
Warren Buffett: Stocks Are Cheaper Than Bonds
Warren Buffett says it’s “quite clear” that stocks are
cheaper than bonds right now, and says investors rushing to the perceived
safety of bonds are “making a mistake”. “It’s quite clear that stocks are
cheaper than bonds,” Buffett said at a recent Fortune conference, CNBC
reports. “I can’t imagine anybody having bonds in their portfolio when they can
own equities, a diversified group of equities. But people do because they, the
lack of confidence. But that’s what makes for the attractive prices [in equities].
If they had their confidence back, they wouldn’t be selling at these prices.
And believe me, it will come back over time.”
- The Guru Investor
Happy Investing!!!
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