Veteran investor Marc Faber, author of The Gloom, Boom and Doom Report, reiterated the need for gold in a diversified portfolio when interviewed last week on CNBC.
Faber, a resident of Thailand, is an advocate of gold storage in Singapore, and believes that a diversified portfolio will help protect against future market corrections which he believes are on the horizon.
Faber doesn’t see further new highs this year in the U. S. equity markets, and thinks that there could be an S&P correction of between 10% and 30%. While admittedly Faber has been expecting a U. S. stock market correction for some time now, his view is based on what he sees as weaker earnings from some US consumer bellwether companies.
Additionally, on a technical level, Faber points to a lower participation rate of S&P stocks making new highs and more stocks making new lows. He looks for an acceleration of weakness in credit markets starting in the high yield (junk bond) market – which has already weakened – and continued weaker corporate earnings.
This post was published at Gold-Eagle on November 30, 2014.
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