Submitted by Tyler Durden on 09/13/2013 - 19:48
Faber
begins by noting that "a deflationary bust, whenever it may happen
(tomorrow or 10 years), is inevitable; and is the opposite of an
increase in prices from inflation." Of course, it is the central banks' response to even the fears of that bust (e.g. whether it washes around the world - from EM to DM)
that will turn an asset-deflationary bust into a hyperinflationary
collapse in fiat currencies; and focused on the long-term, 'Gloom, Boom,
& Doom Report's' Marc Faber looks at how to preserve wealth
through this as he ranges from the obsolescence risk of equities to the
political risk of real estate and banking risks of cash and deposits.
Faber reflects on various lessons from the past (hyperinflations, wars,
banking crises) and geographies as he moves from asset class to asset
class highlighting the pros and cons of each. Preferring a mix of gold
and diversified real estate (and not government bonds), Faber
warns investors to be highly skeptical of anyone who believes they can
forecast what is going to happen over the next 5-10 years.
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