Government Expanded 'Like a Cancer': Marc Faber
"Some economists raise the spectre of deflation, but Faber pointed out that inflation in the UK is high and that food prices are rising by 20 percent in emerging economies.
"People who tell me about the big deflation in Japan, why don't they spend a day in Tokyo? It's still the most expensive city in the world," he added.
"At this level I'm not particularly interested in buying anything," he said in response to the deflation argument. "I buy gold, I don't know what else to buy."
"Faber prefers to be invested in stocks rather than government bonds at this moment, because bonds have had a period in which they out-performed stocks and from now on, he predicted that bond yields will rise.
"Stocks are "in a correction phase" and got very oversold two weeks ago, he said, adding that 1,170 points was the S&P's resistance level. Indexes are unlikely to hit the lows of March 2009 again in the near future, according to Faber."