It's refreshing to hear common sense on the financial news channels.
Should you own gold? Yes, in PHYSICAL form as insurance, not for trading, and you should be thoughtful on how and where you store it.
Should you buy gold now? Probably not at these prices.
Is the US stock market a bargain right now? Of course not!
In the LONG term, what regions are likely to be good for investment? Asia and the US.
What is going to undermine the equity markets? Lack of trust in the markets on the part of investors.
The only place I don't agree with Faber is asset allocation.
* Why own bonds at all now? They don't pay. What's the point in taking the risk on their devaluation if interest rates go up?
* Real estate in Asia? No way. Not now.
* Own some equities? Why?
I'm not advising anyone, but if I were the key now is CASH and contrary to popular delusion. Cash at 0% DOES pay a return in deflationary times.
Look at the return on cash vs. US real estate for example. On US bank stocks. etc. There are many, many asset classes today where you'd have been MUCH better off being in cash at 'no return' than being in the market.
Finally, Farber's best investment advice: "I don't trust anyone."
If you want a return both of your money and on your money, VERIFY everything carefully and if you can't, move on.
By the way, see all the ads surround this article? That rule of not trusting goes TRIPLE for them.