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The world stock market capitalization is approaching new all time record highs....
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And bond yields are at or close to all time record highs around the world.....
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Most investors and analysts are dialed in on how to capitalize
on the future gains that these paper asset bubbles will provide
in the months and years ahead. Very few investors, surrounded
by this type of euphoria, have the ability to think rationally. One of
them is Marc Faber who took the time to call into the Bloomberg
set this week and provide a perfect comment to sum up the concern
investors should be facing regarding their portfolio. The talking
heads, who are accustom to 24 hours a day of financial analysts
pumping stocks and bonds (who sell stocks and bonds for a living),
dismissed the comment as if it was some sort of mistake.
When asked if there is a safe haven available to investors:
"There is no safe haven. Bank deposits are not safe, which used
to be safe. Money in treasury bills is not 100% safe because there
is inflation in the system and you hardly get any interest. Bonds
are not very safe anymore because eventually interest rates will
go up. Equities in the US are relatively expensive by any valuation
metrics you might use. I don't see anything particularly safe.
The best you can hope for is that you have a diversified portfolio
of different assets and that they don't all collapse at the same time."
to be safe. Money in treasury bills is not 100% safe because there
is inflation in the system and you hardly get any interest. Bonds
are not very safe anymore because eventually interest rates will
go up. Equities in the US are relatively expensive by any valuation
metrics you might use. I don't see anything particularly safe.
The best you can hope for is that you have a diversified portfolio
of different assets and that they don't all collapse at the same time."
