Faber : Why Gold Looks Better Than The S&P

Posted by Marc Faber via Investing.com

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pic6fe8a1e51b59719eb932f9ed98aa941d“When I look at asset prices; real estate, bonds, equities, vintage cars… I think that gold is actually one of the few assets that is relatively cheap, relatively inexpensive.”

We had a bear market that ended March 6th, 2009, at S&P 666. We are now over 1,800 — up almost three times.
We had extremely optimistic sentiment just before Christmas. We had very heavy insider selling, with high valuations, and extremely high corporate profits by historical standards.
Over the last two years, most equity markets around the world, in emerging markets, have been down or moving sideways. They’re no longer following U.S. stocks up, and in the U.S., an increasing number of shares are breaking down.

In a month’s time, the bull market will be five years old. This is the second longest bull market in the last 100 years. These are all signs of a top, so I wouldn’t buy shares here. I’m not interested.
Can the market go up another 20 percent? Perhaps.

I wasn’t interested in buying the Nasdaq in late 1999, but between January and March 2000, the NASDAQ went up another 30%. Of course, people were crying shortly thereafter when they realized their losses.
So, the markets go up and down. I think that the upside potential for most stocks is very limited now and there is considerable downside risk. Probably more downside risk than investors realize.”

….extensive article including What are the characteristics you might look for in a resource exploration or development company – full article HERE