I know doomer porn is not good for your financial health but I thought the following excerpt from an interview with Marc Faber most interesting...
He appears to espouse his own version of a quadroscoptic permanent portfolio: 25% Land, 25% Gold, 25% Cash/Bonds and 25% equities but the concept that resonated with me was his statement that he owns gold because wants to be his own central banker...
Marc Faber: Everyone always says, I want to buy low and I want to sell high. So I think for me, of course I own a lot of gold, and I need to buy more to keep asset allocation between 25% in Real Estate, 25% in equities, 25% cash and bonds, and 25% gold. I need to buy more. So for me this is a very happy event. I don't like to buy gold at $1,900 like in 2011. I like to buy it here or lower.
Gold Broker: Do you think it will break under $1,000 like some people say?
Marc Faber: Look. The forecasting record of people is horrible, in particular, the forecasting record of the Federal Reserve. So, I don't know, maybe it will go below $1,000 but my sense is that it will not stay below $1,000. .... I would use the current weakness as a buying opportunity. ... I'm telling everybody, you as an investor, and me as an investor, we cannot trust the government. ... I am my own central banker. I keep my own physical gold. I do not trust anyone of these FCKs.
Be Your Own Central Banker
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MachineGhost
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Re: Be Your Own Central Banker
The track record of Marc "Mr. Doom" Faber is atrocious. You would not make money following his advice long-term, which is probably why he recently came up with his PP hack. But you can see his perma-bear roots are still evident in it being 50% overweighted to real assets. Any deflation (which is what he actually believes will happen) or tight money will crush his portfolio worse than the PP.
Ignore these doom porn jokers.
And being a central banker is not about hoarding gold, its about creating bookkeeping base reserve money to address liquidity crisises. A better parallel would be the Infinite Banking concept, writing options or investing in an insurance company. Both Graham and Buffett his protege made their fortune pulling off the latter shtick.
Ignore these doom porn jokers.
And being a central banker is not about hoarding gold, its about creating bookkeeping base reserve money to address liquidity crisises. A better parallel would be the Infinite Banking concept, writing options or investing in an insurance company. Both Graham and Buffett his protege made their fortune pulling off the latter shtick.
Last edited by MachineGhost on Wed Nov 19, 2014 9:44 am, edited 1 time in total.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!