"The March 2013 Monthly Market Commentary (MMC) was published on the MMC
subscribers only section and emailed on 1-Mar-2013.
"I do not believe in
a deflationary Collapse but I am afraid of it"
I worry about the time
when the current asset inflation will give way to a serious asset deflation,
which will inevitably happen sometime in the future. As an observer of markets I
am, therefore, concerned that the decline in gold prices could be telling us
that we are about to enter a period of asset deflation.
I should like to
make two points very clear. I am not sure when the asset deflation will start.
Most likely, different asset classes will deflate at different times and with
different intensity. The second point I wanted to make is the following. In a
deflationary environment (whenever it will happen), financial assets (stocks,
government and corporate bonds especially high yield bonds) would likely be the
most vulnerable assets. In fact, in a deflationary collapse, I would envision
money to flow into a sound currency and move out of “funny” paper monies.
Therefore, I continue recommending the gradual accumulation of physical
gold.
Similarly, most societies die because of their ill-conceived fiscal
and monetary policies, and not because of their economic problems...."
at http://marcfaberchannel.blogspot.com/2013/03/marc-faber-worried-about-deflationary_12.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29
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