You’re not going to believe, this, but Marc Faber predicts… equities will tank and commodities will surge. PragCap has the video.This “pair trade” if you will is something we’ve heard a lot over the years. A certain brand of folks is convinced that people will get out of equities and into hard commodities.
Now admittedly that would really suck if that happened, but why do people think that’s within the realm of possibility?
We saw what happened when the market crashed. So did commodities. We saw what’s happened during the market rally. So have commodities.
What would cause that disconnect? What would cause people to dump businesses, and plow their money into things like copper and oil?
Have at it.