Tags: Taleb | Stocks | Bonds | swan

‘Black Swan Author’ Taleb: Own Stocks, Not Bonds

Tuesday, 13 Mar 2012 03:09 PM

Economist and ‘The Black Swan’ author Nassim Taleb says there's no choice but to own stocks.

"I own stocks," Nassim Taleb told CNBC. "I don't trust Treasury bonds. I'd rather have a dividend than a coupon."

"I am afraid of hyperinflation. So I have no choice but to own stock and some real estate to preserve my financial situation."

Editor's Note: Wall Street Whistleblower Warns of Meltdown, See His Uncensored Interview

Taleb says he also holds euros because "they know the problems in Europe" but the U.S. does not.

A strong supporter of Ron Paul, Taleb says Paul is saying the right things for the issues we are facing. "I’m a risk-based person,” he says. “From my vantage point there's only one candidate representing the right policies."

Paul, says Taleb, will "cure the fundamental issues. He’s against the issue of novocaine. If you have a severe problem, you do root canal.”

“That’s the only choice you have. You have to start with a government budget that is in control. You don’t gamble with future generations' money."

Taleb says he believes in an America that is resilient. "You don't achieve that through bailouts," he says. “We want jobs, we want a healthy economy. I want to live in a country that has the energy to rebuild things. This is gone. We have a metastatic government...You need to do something drastic."

"You need the economy to stay vital. You need a rate of failure. What is fragile should break early."

The San Francisco Luxury News reports that Paul secured his first popular vote victory of 2012 in the Virgin Islands, receiving 112 votes, or 29 percent, to Romney's 101 votes.

Editor's Note: Wall Street Whistleblower Warns of Meltdown, See His Uncensored Interview

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