Marc Faber Says Buy Oil, Not US Stocks

Oil prices could make further gains but US stocks could be set for a difficult year, Marc Faber, the author the closely-watched Gloom, Boom and Doom report, said in an interview.

"On the upside, if you look at some other commodities like copper, then obviously oil prices could go up substantially even from these levels," Faber told CNBC's (NYSE:GE) Indian partner TV-18 in Mumbai. "I don't think that oil is expensive compared to other commodities or compared to other goods prices in the world."

"Further gains would obviously depend on some political problems — some interruptions in oil supplies or a possibility of the global economy experiencing some kind of a crack-up boom," he said.

According to Faber, a crack-up boom is a boom that is driven by artificially low interest rates, easy monetary policies and debt growth.

"Crack-up booms don't last. They are not sustainable but they can last between six and 18 months and then a renewed setback occurs in the global economy," Faber said.




Source: CNBC