Investment Advice | 2-9-09 → Washingtons Blog
Investment Advice | 2-9-09 - Washingtons Blog

Monday, February 9, 2009

Investment Advice | 2-9-09

Here's a round up of what investment advisors are saying today:

  • Marc Faber is bullish on Asian stocks for a near-term bounce:
  • "A 30% rebound? So the tactic or strategy here if you want to be invested in asian equities, I mean, with the yields that high it seems like a good time to get in and hold stocks, specially the ones that pay you and pay you well to hold them.

    MARC FABER: Yes, sure. Actually I said that asian markets are better valued than the US markets and I also pointed out that now you are paid to wait here in Asia. I don`t think there is an huge downside risk, I think there is upside potential.

    Don`t forget that from the November 20 low, even the S&P 500 Index managed to rally 27% between November 23 and January 6 and many shares like mining companies, you take Newmont Mining, it was a 21 dollars and it went to 45, DryShips was at 3 and went to 15, you will have huge volatility in this environment of ultra low interest rates.

    It doesn`t mean that the global economy will heal anytime soon specially given the government interventions that will in my opinion prolong the crisis and not solve it at all.

    What would be the catalyst for that 30% upside you mentioned?

    MARC FABER: First of all we have fallen dramatically and markets have become oversold, in particular we have to talk about commodities because that is probably the most oversold market of any, but secondly the global economy fell of a cliff between September and January of this year, in the last 4 months and the news is universally very bad.

    But don`t forget when the news were very good in 2007 the market peaked out, so on bad news you can reach a temporary bottom and also I believe we have this tremendous downside momentum in the global economy, in other words we fell of a cliff and the news will remain bad but maybe not as bad as in the last 4 months and then the goldilocks crowd that is always around us and will never give up, no matter what, they will say “now, see, the global economy is improving so lets buy”.

    I am not a great believer that there is going to be a great economic improvement but I believe that market participants that are always bullish because they have been conditioned to be always bullish over the last 25 years, they will push markets up.
  • Jim Rogers likes Brazil:
    "What is happening now is good for the fundamentals of raw materials so, all those countries that produce stuff , like Brazil that is a reasonably well managed country now, are going to do much better than the others.". And see this.
If you hear of any investment advice which you think is good, please post a comment. This roundup may be updated periodically, so keep checking back.

I am not commenting on who - if anyone - I think is right and who I think is wrong, but only summarizing what some of the top advisors are saying. In addition, you should check the links to make sure that the information contained herein is accurate, and to read any price or timing recommendations (concerning when to buy, sell, or short) of the advisors.

I am not an investment advisor and this should not be taken as investment advice.


  1. With drought everywhere and a massive world downturn with nobody knowing where the bottom is buying anything in markets anywhere is only for the brave. For the rest of us I recommend growing a garden and storing food, you can always trade it for gold when those that have gold get hungry.


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