Marc Faber has one message for gold buyers in 2017… remember your history!
In a recent issue of the Gloom, Boom and Doom Report, Faber advises investors to view any temporary weakness in gold as a great opportunity for accumulation. Even as the stock market hits high after high, history says that this is not a time to be complacent.
Faber’s Warning to Investors
Faber is warning investors that a 40% correction in the stock market is coming. This could destroy many Americans’ dreams of a secure retirement.
Investors are pouring money into stocks, which continue to trade at historic highs. But Faber believes asset prices are dangerously overinflated, driven by shortsighted investors who are chasing short-term gains. He is also not optimistic about the road ahead for the U.S. dollar. He describes it as a “vulnerable” currency with a lot of visible downside relative to other assets like precious metals.
Based on current economic conditions, Faber believes that investors should be advised to consider allocating as much as 20% of their portfolios to precious metals.
He has admired gold’s resiliency, noting that gold prices held their own over the summer even in the face of rising rates and an overheating stock market.
Another disturbing trend Faber has identified is that the economic recovery is not on track as many analysts have suggested. The bottom line: recent economic statistics suggest the global economy is actually weakening rather than strengthening.
It is just a matter of time before unrealistic investor expectations meet cold reality, and when it does, gold is poised to benefit. Retirement investors need to consider what it would feel like to live for 40 years on only 50% of their expected income.
What would a market crash mean for your family and your legacy? Don’t wait to find out.
Experts: Gold is Poised for Positive Gains
As we expected, Federal Reserve Chair Janet Yellen recently began playing down interest rate hike plans for the immediate future. Her dovish comments in two-day testimony before Congress caused quite a stir. This was a key boost that caused gold to post solid gains this past week.
Gold also benefited from the disclosure of weaker-than-expected retail sales and inflation data. Analysts seem to agree with Yellen that this wave of bad news casts doubt on the Fed’s ability to raise rates later in the year. RJO Futures senior market analyst Phillip Streible expects disappointing retail sales to have the biggest positive impact on gold and silver in the near-term. According to Streible, weak retail will eventually take down the stock market.
Bill Baruch, senior market analyst at iiTrader.com, also says that the current string of disappointing economic data will slow down any potential interest rate hikes in 2017.
Hope for the Best, Prepare for the Worst
The list of challenges facing our country is long. While I hope and pray that America is up for the challenge, the road to recovery is a long one and looks more treacherous every day. Washington is now locked in a permanent state of hyperbolic dysfunction, with no end in sight. Our enemies abroad are now both a physical and digital threat, growing stronger at every turn.
Can you afford to ignore Faber’s warnings about the coming stock market correction and watch the value of your hard-earned money evaporate like it did in 2000 and 2008?