Marc Faber's Outlook on 2009

Marc Faber's Interview to CNBC on January 19, 2008

The global financial environment:

Well, I think that the credit markets have improved somewhat. In general I think that the markets may rally somewhat more. Everybody expects the second half of 2009 to improve. I think there’s a very good chance that the second half of 2009 will be even worse than the first half of 2009.

If you talk about oversold markets, and major lows, I mean, commodities have been hit very, very hard. Exploration will come to a standstill. And not much new oil supplies will come on stream and not much new mining supplies will come on stream. So whenever the global economy recovers, and I hope it’s in our lifetime, then obviously commodities will again rise very substantially. And you can pick up now some quality names in the commodity sector that then should perform very well.


What Marc Faber is doing with his own money:

Well, I have to tell you. I think the markets became very oversold in November, and there can be a rebound. I'm still thinking that for the next couple of months the markets will stabilize and rebound somewhat. So I have some shares. I have some shares in Asia. I have some mining stocks, exploration companies, physical gold. And as far as the currency is concerned, I think the dollar is a disastrous currency, but the others are even worse. So, I have a basket of different currencies mostly euros and dollars. But I'm leaning more towards the view that the dollar could strengthen somewhat more.