Investor Marc Faber said a series of coordinated interest-rate cuts by central banks including the Federal Reserve to ease the economic effects of the global financial crisis won’t halt a worldwide slide in equities…
“The slashing of interest rates will not help very much,” Faber, who manages $300 million, said in an interview in Manila. “They may cushion somewhat the decline but make matters worse.”
The Swiss-born investor added:
Had central banks around the world kept interest rates that encourage saving we wouldn’t have these problems today.
However, Dr. Faber believes there still remains a glimmer of hope for investors in equities. From the CNBC website yesterday:
The stock market is as oversold as it has been since the crash of 1987 and the broader market could start to rebound until early next year, Marc Faber, editor and publisher of the Gloom Boom and Doom Report, said Tuesday.
The market is possibly in “the most oversold condition” since perhaps Oct. 19, 1987, Faber told CNBC’s “Squawk Box.”
“Usually there is some seasonal strength between October and March” so it is possible the S&P 500 index will create a low between now and the end of the month, he said.
He talked about some areas investors should be looking at:
Longer-term investors will have to position themselves in emerging country stock markets to play the global recovery, Faber advised.
Faber, who recommended buying gold at the start of its six-year rally, also pointed out:
For now, gold is still attractive, with central banks readying more rate cuts and printing money, he said.
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