Marc Faber of the Gloom, Boom, and Doom report appeared on Bloomberg T.V. recently, discussing the current bull market around U.S. Treasuries.
The host asked if U.S. Treasuries are “the biggest bubble ever.” Faber’s response was “yes.”
If you me asked about the Nasdaq in December 1999, I would have said this is the biggest bubble ever. And yet the Nasdaq continued to go up 30 per cent until March 21 2000, and then what happened and how have these people faired since they invested in the Nasdaq in the final months of 1999 and early months of 2000? It’s been a disaster.
And I think the government bonds bubble will also burst, but I don’t know if it’s tomorrow or in three months. I suspect actually maybe sooner than later, because the consensus is now buy US government bonds.
You’ve been warned.