Stocks and bonds are overbought now, says Marc Faber, editor of the Gloom, Boom & Doom Report. So what’s an investor to do? Buy a house, if you need one to live in, he tells CNBC. The stock and bond markets are rigged by the Federal Reserve and other institutions, he says.
So, “If you can find a house you really like, then I would really buy a house,” Faber says. “I think the price is quite right.”
As for stocks, Faber favors energy shares. “I like energy because if the economy surprises on the upside, demand will pick up,” he says.
Demand already has picked up in developed economies and remains strong in emerging markets for quite some time, Faber notes. “In a Goldilocks outlook, you would have to own some oil.”
And if you’re bearish about the world, you see a nightmare in the Middle East, and Saudi Arabia itself would be vulnerable, he says.
“Under any scenario, I would own oil and energy shares, but they’ve rallied a lot and are vulnerable to corrections.”
Specifically, Faber likes Chesapeake Energy, “but at this level it may also be due for a correction.”
Housing expert Robert Shiller of Yale University say home buyers may do better by waiting.
"My intuition rates the probability of another 15, 20, even 25 percent real home price decline as substantial,” he told reporters on a conference call.
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