Marc Faber: Stocks Hit High for the Year 2 Months Ago

By on July 14, 2011

Marc Faber was interviewed on CNBC this morning.  Faber doesn’t expect an actual default on U.S. debt, but believes a default will be achieved through depreciation of the dollar.  He added that 10-year Treasury Bonds are a “mindboggling” investment with their yield of less than 3%.  He said the deflationary environment in which these bonds would be a good investment would be calamitous for the U. S. budget.

Faber also touted gold and said there was risk in not owning it.  While the metal could drop 10 percent in the short term, Faber said gains would be big over the next 5 to 10 years.  He believes stocks have hit their highs for the year.

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