First we have Doom and Gloom Marc Faber:
- Doesn’t think stocks are incredibly attractive, but relative to government bonds they certainly are.
- He is ultra-bearish and thinks the global financial system is headed for disaster, he would rather be in high quality stocks than bonds.
- If he had to choose between Spanish, Italian and American bonds, he would pick U.S. government debt because they can print money.
- Would far prefer equities, real estate and precious metals though.
And then we have Dr. Doom Roubini:
“Last year was a year of risk, volatility, uncertainty and surprises and the question is, ‘Are they going to happen again?’” Roubini said. “If you think about all these tail risks about the global economy, the reality is many of them are not temporary. Many of them are not transitory and many of them are not random events. They’re going to be sources of volatility.”
He said he’d buy the U.S. dollar and Treasuries since these assets tend to perform better during periods of risk aversion. While the U.S. has a “large fiscal deficit,” it’s “the less dirty shirt in a very dirty laundry bag,” Roubini said. Last year, Treasuries had the biggest annual return since the depths of the financial crisis in 2008 as Europe’s debt turmoil spurred investor demand for refuge.
- Doesn’t think stocks are incredibly attractive, but relative to government bonds they certainly are.
- He is ultra-bearish and thinks the global financial system is headed for disaster, he would rather be in high quality stocks than bonds.
- If he had to choose between Spanish, Italian and American bonds, he would pick U.S. government debt because they can print money.
- Would far prefer equities, real estate and precious metals though.
And then we have Dr. Doom Roubini:
“Last year was a year of risk, volatility, uncertainty and surprises and the question is, ‘Are they going to happen again?’” Roubini said. “If you think about all these tail risks about the global economy, the reality is many of them are not temporary. Many of them are not transitory and many of them are not random events. They’re going to be sources of volatility.”
He said he’d buy the U.S. dollar and Treasuries since these assets tend to perform better during periods of risk aversion. While the U.S. has a “large fiscal deficit,” it’s “the less dirty shirt in a very dirty laundry bag,” Roubini said. Last year, Treasuries had the biggest annual return since the depths of the financial crisis in 2008 as Europe’s debt turmoil spurred investor demand for refuge.
