Marc Faber thinks QE2 a disaster for stock markets

The original Dr Doom, Dr Marc Faber thinks Fed quantitative easing this week will likely disappoint the stock market which is looking overbought. A correction is overdue but the next bear market is not around the corner. This is a buying opportunity with a ‘crack up boom’ to follow.

He thinks equities are more attractive than bonds and cash in the long run, particularly in emerging economies. Agricultural commodities and precious metals are his other top picks, although gold is about due for a correction.

The dollar is also due for a rally, says Dr Marc Faber as a great contrarian investor. Staying long in the dollar might be a good short term call, and the Swiss Franc and Yen are due for a fall.