Money Talk from Dr.Doom

Dr. Marc Faber aka Dr. Doom had a dinner speach organised by CSLA last Monday in Singapore. Business Times' Teh Hooi Ling, who pens the Show Me The Money Column was there, and she gave a highly interesting write-up on the speach.

http://business-times.asiaone.com/sub/money/story/0,4574,217867,00.html?

• Since 2002, the prices of everything have gone up. Now, art dealers are bullish about art, property dealers are bullish about property, and bond traders are bullish about bonds. Everybody is bullish about some thing.
  
  'But we will not have everything going up on a sustained basis,' said Dr Faber. 'Somebody is going to be wrong - and I think it's the bond traders. The worst thing to do now is to buy bonds.'
  
  The biggest risk, he thinks, is geopolitical. 'I believe the US will bomb Iran, or Israel will bomb Iran, or they will do it together. And I think Iran should have nuclear weapons. Singapore should have nuclear weapons as well. Either everyone has or no one has.'
  
  Then of course there is the risk of a flu pandemic, or disastrous fallout from global warming.
  
  'I think now is not a bad time to sell,' said Dr Faber, when asked whether investors should take some money off the table. Yet, as he said, while there will be short-term corrections, the long-term uptrend is inevitable.