While Faber favours gold, he thinks that it too is due for a correction after staging a huge rally.
He spoke with Fox Business News on Friday:
It has a huge rally from around – the low was at $1,522 last December and we are now over $1,700 and I think we need a correction here. In fact, I am now bearish about practically all assets near term I think we’re entering a correction time where there will be some disappointments, where stock markets, from the recent times can easily drop 20%.
However, Faber’s bearish stance isn’t so bearish that he has dumped everything.
I’m not 100% in cash, for the simple reason that I could be wrong, but in general I think that people that have a heavy exposure to assets being that equities, or gold, or other commodities. I think they will face some profit taking here.
Here’s the whole interview courtesy of Fox Business News: