Tags: marc | faber | china | us

Marc Faber: China Bubble Will Pop and U.S. Is Doomed

Monday, 18 Jan 2010 08:55 AM

The United States is “doomed” because it faces a large debt crisis, says Marc Faber, the editor of The Gloom Boom & Doom Report.

He believes that the consensus is wrong and a correction could occur sooner, partly due to complacency.

Huge rising debt and interest will affect the United States in the next five to 10 years.

Investors should take their money out of stocks since the upside is “limited,” he told Yahoo Tech Ticker.

Investors who are affecting the market right now could "pull the trigger relatively quickly,” he said.

While bonds could rebound in 2010, investors need to be wary of Treasuries down the road because they will lose value.

Investment opportunities remain in Asia because they will demonstrate “favorable growth” in the future, he said.

India and Japan still have opportunities, he said.

Gold remains “attractive” for a longer-term perspective, Faber said.

He is also a fan of buying wheat.

Investors should stay away from wheat exchange traded funds, or ETFs, since they are expensive and should instead buy stock in companies with farm land or potash companies, he said.

Faber said oil prices will increase since demand from emerging countries will also rise, he said.

China could also see an end to their bubble from too much debt, but it will probably not occur in the near term, Faber said.

“It is very difficult to pinpoint a day when China will implode, I don’t think it will happen right way,” he said.

U.S. consumer spending is being affected by slow job growth, Bloomberg reports.

“We are going to have positive but moderate growth. We are gradually emerging from recession, said Zach Pandl, an economist at Nomura Securities International.

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The United States is doomed because it faces a large debt crisis, says Marc Faber, the editor of The Gloom Boom Doom Report. He believes that the consensus is wrong and a correction could occur sooner, partly due to complacency. Huge rising debt and interest will...
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2010-55-18
Monday, 18 Jan 2010 08:55 AM
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