Bonds are the biggest bubble in history says Marc Faber

Posted on 08 June 2012 with no comments from readers

Marc Faber, the publisher of the Gloom, Boom & Doom report, speaks with Bloomberg’s Sara Eisen about European stocks, a US treasury bubble, gold and a coming worldwide recession.

Whether it is recession or inflation or a market crash there are some traders who continue to make steady gains. How can they do it? The trick lies in identifying the right opportunities, picking the undervalued stocks and other assets. So even a market crash can be a good thing for the smart investors.

Ways to make profits from a market crash

Know the business you invest in rather than the price of the stock alone. So when you look at the underlying business that is offering the stock you would know whether the business is strong enough to bounce back after the market recovers. And if you are trading cryptocurrencies, identify currencies that are known to have a strong track record. These are the ones that have always shown a potential for growth irrespective of the market conditions. So if the price of the currency or the stock falls during a market crash then it would be a good chance to buy the asset at a lower price. You could even choose trading bots like Bitcoin Code that are known to take such prompt decisions in various market conditions.

Even if you have chosen the best asset and even if you know that there is going to be a growth, it is difficult to predict the actual profit and the time taken for the profits to be delivered. So avoid taking huge risks when the market crashes. Keep it simple and invest just a small sum so that you would be able to tally any possible losses made by your other assets. After all, minimising the losses is of higher priority than making quick gains in trading. And this is also the best way to achieve a consistency in your profit patterns without affecting your portfolio.

Marc Faber talks about making crucial investment decisions.

He contrasts the low yields on US bond with companies that offer dividends of five to seven per cent, although that said stocks are just entering a bear market and so are not a buy just yet. Gold is heading back up and gold mining shares are very inexpensive.

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