So, he has 25% each in shares, in currency, in property and in precious metals. Why hasn’t he divided things up into fifths and put something into bonds ie US Treasuries?

He doesn’t know which way the markets are going to go, so he divides up into quarters, hedging his betting. If he has not invested in bonds, why has he continued in equities, which are just as doubtful of avoiding a crash?

Why has he gone into precious metals at all when he is prepared to risk the stock markets and debasing currency? Why has he stopped at just 25% bullion when he doesn’t know what is going to happen?

It would be interesting to know the directions that his investing proportions have each gone in order to reach 25%. Has his bond investment suddenly gone to 0%; has his precious metal investment gone from 10% up to 25% quickly? These directions would tell us more about how he has arrived at his “don’t know” position.

I do realise that one should not criticise an investment guru, particularly someone as acknowledged as Marc Faber, but it makes for a more interesting response than sycophancy.

Ed Note: Subscribe to his ‘Gloom, boom and doom report’ is you want the full picture. It is a very good read.

Anyone who puts money into sovereign bonds, including US Treasuries, was probably sleeping over the past 12 months . . .

Shades of Harry Browne’s Permanent Portfolio, except his quartiles are cash, bonds, stocks and gold.

The point is that when one quartile does badly, another will do well and outweigh the loss. This has actually worked well over the last few decades.