1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (245) 

Marc Faber Thinks That Many Sovereign Governments Go Bankrupt

October 26, 2011 | About:

Marc Faber, editor of the Gloom Boom Doom report gave an interesting interview this morning where he made three key points.

First of all, we can expect money printing until sovereign governments go bankrupt.

"The ECB will print money one way or the other and the debts that should be written down to a realistic value will continue to be carried on the books of banks at unrealistic values so the end crisis will be postponed until the sovereigns go bankrupt."

Stocks will outperform government bonds in this money printing environment.

"I think that we are in a very difficult situation and governments don't want to recognize that. And so the fiscal deficits are out of hand. But it doesn't mean that stocks will go down when you print money, everything goes up at different times, different asset classes. I think that stocks may continue to go up and I rather own equities than government bonds for the next ten years."

Marc Faber sees a trading range on the S&P between 900-1350 with no new highs on the horizon.

"I think that the super bulls and super bears will be disappointed that we're in a trading range of 900 on the S&P and 1350, something like this. I don't think that we will make a new high above the May 2nd high on the S&P."

Rating: 2.8/5 (5 votes)


Please leave your comment:

GuruFocus Mobile App

User Generated Screeners

DBrizanProspects 6May2016
DBrizanProspects 5May2016
DBrizanholdings & prospects 25May2016
matt.baker52 week low
lcaldridgeAldridge Screener
antonakosGrowth Screen

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)