Marc Faber Speculates On US Hyperinflation

Here’s the Bloomberg link to the 23 minute interview:

Faber Sees U.S. Inflation Approaching Zimbabwe Levels

It seems infathomable to see gazillion billion percent inflation here in the US but then again, a few years ago, the same would have been said of the carnage on Wall Street. In actuality, Faber spends relatively little time talking about the prospect of US hyperinflation.

Faber still favors Asian markets and some commodities. He also had some very interesting comments on the Japanese market and views those stocks favorably despite being negative on Japan from a socioeconomic standpoint. And at the very end, Faber puts himself squarely in the peak oil camp and calls natural gas the most undervalued commodity at the moment.

Readers, as always, should greet Faber’s pronouncements with some skepticism. At the end of the day, each individual must be responsible for his own investment decisions and if I lose money following some Faber pick, it won’t do me much good to blame him.

The problem with Faber’s speculations is that they are usually right, eventually. But leaving timing aside, there is a big difference between getting the macro call right and making money off it. Faber himself gives a great example of how he sees Japan as a society on a downswing but yet, Japanese companies are world-class and could be good investments despite the larger macro picture. Investors would do well to apply this concept across the broad spectrum of securities when evaluating investment prospects in light of macro considerations.

One Response to “Marc Faber Speculates On US Hyperinflation”

  1. The Enlightened American » Green (Shoots) Signals Caution Says:

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